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Help to Buy and modular homes
| Government share, new home | Up to 40% of the purchase price[1] |
|---|---|
| Minimum deposit | 2%[1] |
| Income caps | A$103,000 individual; A$165,000 joint or single parent[1] |
| Land + build deadlines | Start within 12 months, finish within 36 months of land settlement[2] |
| Modular construction mentioned? | No — the new-build guide does not address construction method[2] |
A modular home permanently fixed to land the buyer owns can be eligible for Help to Buy on the same basis as any other new home: the scheme defines eligibility by what the property is, and none of the published scheme documents compiled here excludes a home because it was built off site.[2][3][4] For a new home the government contributes up to 40% of the purchase price, the buyer needs a deposit of at least 2%, and taxable income must be no more than A$103,000 for an individual or A$165,000 for joint applicants or single parents.[1] For land and a build, construction must start within 12 months and finish within 36 months of land settlement.[2]
Help to Buy is the Australian Government's shared equity scheme. The government takes an equity share in the buyer's home, so the buyer needs a smaller deposit and a smaller loan. Building a new home on vacant land is eligible, and the government share for a new home is higher than for an existing one.[1] None of the scheme's published documents mentions modular, prefabricated or transportable construction.[2] This page works through how the general rules apply to a factory-built home, and marks where the documents give no answer.
How the scheme works §
The government contributes up to 40% of the purchase price of a new home, or up to 30% of an existing home. The buyer needs a deposit of at least 2%.[1] Applicants must be Australian citizens aged 18 or over who do not own property anywhere. They must live in the home as their main residence. Taxable income must be no more than A$103,000 for an individual, or A$165,000 for joint applicants and single parents. These caps are indexed each 1 July.[1]
The government's share is repaid in full when the home is sold.[4] Before then, the buyer can buy it back in stages or all at once.[1] Help to Buy cannot be combined with state or territory shared equity schemes, loans or guarantees.[1] For the separate federal 5% deposit scheme, see the 5% deposit scheme and modular homes.
Does a modular home qualify? §
The scheme defines eligibility by what the property is, not by how it was built. A property is eligible if it is an existing dwelling or a new home and its price is within the cap for the area.[3] The General Terms define a residential property as land on which a dwelling is or will be affixed. Real property includes buildings or structures permanently affixed to land.[4]
- A modular home permanently installed on land the buyer owns
- On these definitions, a factory-built house fixed to its footings is a dwelling affixed to land like any other. The documents compiled here contain nothing that excludes it because it was built off site.[4][2]
- A tiny home on wheels or other unfixed structure
- A structure that stays a registrable trailer, rather than being affixed to land, does not obviously meet the definition of a residential property. The documents do not address this case directly.[4]
- A home in a land lease community or residential park
- Here the buyer owns the dwelling but not the land under it. The definition of residential property is built around land, and the documents compiled here do not address this arrangement. See [land lease communities](/guides/land-lease-communities/).
Where a case is not addressed, ask Housing Australia or the Participating Lender before committing. Do not assume the answer.
The building contract rules §
For land plus a new build, the scheme sets conditions on the building contract. Housing Australia advises buyers not to sign a build contract unless all of the following are true[1][2]:
- The builder is licensed or registered and is not related to the buyer, dealing at arm's length.
- The builder holds the required insurances, including home warranty insurance.
- The contract covers the entire build, including all necessary works such as the driveway, through to the home being certified for occupation.
- The price is fixed, and land plus build stays within the area's price cap.
The third condition matters most for modular buyers. Some published modular prices leave out site works. One Queensland builder's published price, for example, includes transport and approval fees but excludes site works.[5] A quote that covers the factory-built home but leaves footings, connections and driveway to separate contracts would not, on its face, be a contract for the entire build. Ask for a single fixed-price contract that runs from site preparation to the occupancy certificate.
The same condition raises questions about kit homes and owner-builders, which the documents do not mention. A kit supplied for the buyer to assemble is not a contract with a builder for the entire build, so it does not obviously fit. See modular vs kit home.
Progress payments and off-site construction §
At land settlement, Housing Australia pays the government's share of the land through a nominated conveyancer. During construction, the Participating Lender handles progress payments based on invoices and supporting documents. Housing Australia then contributes its proportionate share of each payment.[2] Payments are made at the time Housing Australia considers appropriate to support the progress of the works.[4] If the payment schedule changes from the one in the signed contract, the buyer must tell the lender.[2]
Where a modular contract schedules payments for work done in the factory, before anything happens on site, the scheme documents do not say whether those payments will be funded in the same way. Raise the builder's payment schedule with the lender before signing. Progress payments and off-site construction explains how factory-stage payments are usually structured, and CommBank's assessed manufacturer program shows how one lender handles them.
Deadlines §
Construction must begin within 12 months of land settlement and be finished within 36 months. The buyer must move in within 3 months of the occupancy certificate being issued.[2][3] For a modular build, the approvals, the factory production slot, delivery and the site works all have to fit inside that window.
Price increases and variations §
If the build price goes up, the buyer or lender must cover the increase where possible. The government can contribute more only up to the 40% limit, and never so that land plus build exceeds the area's price cap. A larger loan may also bring lenders mortgage insurance into play.[2] A fixed-price contract that already includes site works reduces the room for these variations.
Price caps §
The cap applies to the total purchase price, land plus build.[2] Caps differ by state and territory, and within some states between capital cities, named regional centres and other areas.[3] The caps have changed since the scheme began, so check the current table on the official Help to Buy fact sheet before choosing land or signing a contract.[1]
What is not covered here §
This page does not cover current price cap amounts, which participating lenders offer Help to Buy, how the government's share changes in value over time, application processing times, or interest rates. The scheme documents do not address modular, prefabricated, transportable or kit homes, owner-builders, land lease communities, or the funding of factory-stage payments. On those points this page reports only what the definitions say and makes no claim about how Housing Australia will decide a particular case. None of this is financial advice.
Related guides §
- Financing a modular home
- Can you get a mortgage on a modular home?
- The 5% deposit scheme and modular homes
- First Home Owner Grant and modular homes
- Progress payments and off-site construction
- What turnkey includes
Sent to info@modularlivingaustralia.com.au and handled by a person. See Privacy.
References §
- Australian Government — Help to Buy fact sheet — Fact sheet dated 1 July 2026. The Australian Government contributes up to 30% of the purchase price of an existing home or up to 40% of a new home; the buyer provides a minimum 2% deposit; individual applicants must have taxable income at or below $103,000 and joint applicants or single parents at or below $165,000, indexed each 1 July; applicants must be Australian citizens aged 18 or over who do not own property in Australia or overseas, and must live in the home as their principal place of residence. Eligible purchases include a new or existing house, townhouse, apartment or unit, or vacant land for the construction of a new home. Buyers should not enter a build contract unless it is with a licensed or registered builder who is not related to them, the builder holds the required insurances, the contract covers the entire build including the driveway through to the home being ready to move into, and the price is fixed. Participants cannot receive help from other schemes, including shared equity schemes, loans or guarantees provided by states or territories. Property price caps apply by area. firsthomebuyers.gov.au/HTBFactSheet
- Housing Australia — Help to Buy, Building a New Home Guide — Version 260701. The building contract must be fixed-price, with land plus build within the area's price cap; the builder must hold the required licences and insurances, including home warranty insurance, and deal at arm's length; the builder must complete the entire home to the point it is certified for occupation. Housing Australia contributes the government's share of the land at land settlement through a nominated conveyancer; during construction the Participating Lender handles progress payments based on invoices and supporting documents, and Housing Australia contributes its proportionate share of each progress payment. Changes to the progress payment schedule must be notified to the lender. Construction must begin within 12 months and be completed within 36 months of land settlement, and the buyer must move in within 3 months of the occupancy certificate. Cost increases must be covered by the buyer or lender where possible; the government may contribute more only up to the 40% limit and the area price cap, and a larger loan may attract lenders mortgage insurance. The guide does not mention prefabricated, modular, transportable, kit or off-site construction. firsthomebuyers.gov.au/HTB-newbuild
- Help to Buy Program Directions 2025 (Commonwealth) — Legislative instrument F2025L00682. Section 5 defines a new home by reference to paragraph 40-75(1)(a) of the GST Act, excluding a dwelling previously rented or made available for rent; section 21 makes a property eligible if it is an existing dwelling or a new home and its price does not exceed the price cap for the area; section 23 requires a new home contract to oblige the builder to construct a fully completed dwelling on the land to the point it is certified fit for occupation; section 24 sets the 12-month start and 36-month completion requirements; section 7 sets price caps by area. legislation.gov.au/F2025L00682/asmade/2025-06-13/text/original/pdf
- Housing Australia — Help to Buy Scheme General Terms — Defines Residential Property as land on which a Dwelling is or will be affixed predominantly for residential purposes, and Real Property as including vacant land, houses, townhouses, units and apartments and buildings or other structures permanently affixed to land. Construction progress payments are made progressively at the time Housing Australia considers appropriate; an Eligible Building Contract must specify a fixed price for the Construction Works; the government's share must be repaid in full when the property is sold. firsthomebuyers.gov.au/media/1665
- Westbuilt Homes — Queensland modular builder's pricing page. States transport is fixed-price across Queensland and northern NSW and approval fees are included, while site works are excluded from the published price. Builder-published commercial guidance. westbuilt.com.au/pricing
Figures are as published by the sources above at their respective dates and are paraphrased summaries, not verbatim reproductions. Verify current pricing and rules directly with builders, lenders and planning authorities.