Compare six different paths to buying a first home in Australia side by side - standard bank savings, the First Home Super Saver scheme, a parental gift, a guarantor arrangement, the First Home Guarantee (5% deposit), and Help to Buy - showing how many months each path could take to reach a purchase and the estimated 10-year cost comparison.
How is 'year 10 wealth' calculated?
We grow the target property at your chosen annual growth rate (3% by default) compounded over 10 years, then subtract the loan balance remaining at month 120. For Help to Buy, the government's share of the year 10 sale price is also subtracted because that share belongs to the scheme, not to you.
Why is the year 10 wealth different across paths?
Different paths give you a different loan size at purchase, so the loan still owing at year 10 also differs. Help to Buy starts with a much smaller loan but the government keeps a slice of the upside. The 5% Deposit Scheme starts with the biggest loan, so more interest has been paid off, but the loan owing at year 10 is also higher.
What does 'eligibility' mean?
Each card shows whether the path is available for the inputs you entered. Bank savings and FHSS are always available. Gift and guarantor only show as available once you enter an amount. Help to Buy and the 5% Deposit Scheme check the price cap for your state and region, and Help to Buy also checks the income cap. Final eligibility is decided by the scheme administrator.
Why is FHSS not as fast as I expected?
FHSS is capped at $15,000 of voluntary contributions per person per financial year, with a $50,000 lifetime limit. For a couple, that is $100,000 across both. If your 20% deposit target is well above that, FHSS handles part of the deposit and the rest still comes from regular savings, which limits the speed boost.
Are parental gifts taxed in Australia?
Australia has no gift tax. Parents do not pay tax on the gift, and you do not pay tax on receiving it. Lenders may ask for a statutory declaration confirming the money is a gift rather than a loan, especially if it lands close to settlement.
Why does Help to Buy show higher year 10 wealth sometimes?
Because the borrower's loan is much smaller (2% deposit plus 60% to 68% loan, depending on whether it is a new build). The loan reduces faster, and the property still grows in value. The trade-off is that the government keeps 30% or 40% of the eventual sale price, which is already netted off in the year 10 figure.
What about the cost of LMI for the bank-savings path?
The bank-savings path models a full 20% deposit, so no LMI applies. If you wanted to buy sooner with less than 20%, LMI would normally apply unless you use the 5% Deposit Scheme or a guarantor. The 5% Deposit Scheme card already excludes LMI by design.
Is this financial advice?
No. This is general information, not financial advice. See the disclaimer for the full statement, and confirm scheme eligibility with the relevant administrator before deciding on a path.