5% Deposit Scheme vs Help to Buy: which could suit you?
A lower deposit isn't automatically better. Compare who owns the home, income limits and what you repay.
Both are Australian Government schemes that let you buy with a small deposit, but they work very differently, and you can't use both on the same purchase.
| 5% Deposit Scheme | Help to Buy | |
|---|---|---|
| Deposit from | 5% | 2% |
| Income limit | None | $103,000 individual, $165,000 joint or single parent |
| Who owns the home | You own all of it | The government can hold up to 40% of a new home, or up to 30% of an existing home |
| Your loan | Larger, with no Lenders Mortgage Insurance | Smaller, because the government pays for its share |
| Perth price cap | $850,000 | $850,000 |
When the 5% Deposit Scheme may fit
It can suit you if your income is above the Help to Buy limits, or if you want to own the whole home from day one. The trade-off is a larger loan, so your repayments and total interest are higher.
When Help to Buy may fit
It can suit you if the smaller loan makes repayments manageable and your income is within the limits. The trade-off is that the government's share has to be repaid eventually. You can buy it back over time or when you sell, and the amount is based on the home's value at that time, so it shares in any gain or loss.
Questions to ask before you choose
- What would my repayments be under each scheme?
- Would I qualify for a state grant or stamp duty concession as well?
- Does my lender take part in the scheme?
- If my income rises, how could that affect Help to Buy?
Read more about the 5% Deposit Scheme, or talk to Eddie about how they compare for your situation.
Sources: Help to Buy, firsthomebuyers.gov.au · firsthomebuyers.gov.au. Rules and rates change, so confirm before you sign.
General information only, not financial, credit, tax or legal advice. Last checked 4 November 2026. Back to all articles.