Help to Buy vs 5% Deposit Scheme
Compare deposit, repayments, ownership and projected wealth, including what Help to Buy's lower repayments could earn if invested.
Your scenario
Help to Buy cap here: $1,000,000. Government equity up to 30% for an existing home.
Loan and market
Applied to Help to Buy's smaller deposit and lower repayments.
Eligibility check
After 10 years, Help to Buy shows more projected wealth by
$85,889
Help to Buy's figure assumes its lower repayments and smaller deposit are invested at 5% a year. Under these assumptions only; change the sliders to test others.
- Help to Buy wealth
- $548,752
- 5% Deposit wealth
- $462,862
- Help to Buy repayments
- $1,283 less a month
The Help to Buy figure only holds if the savings are invested
You can use one scheme, not both
Eligibility based on your inputs
Each card shows the verdict. Open one for the scheme's full terms.
Help to Buy (Federal) (likely eligible)2% depositWithin the price cap and the $165,000 couple or single parent income cap. Housing Australia makes the final eligibility determination.
- Government contributes up to 40% of the price for a new home or 30% for an existing one.
- Minimum 2% deposit. No LMI.
- Income caps: $103,000 single, $165,000 couple or single parent.
- Price cap in this area: $1,000,000.
- The government owns a share of the home and receives that share of the sale price.
- Refinancing is restricted until the government share is bought out.
- If income stays above the cap, you may be required to buy back the government share.
First Home Guarantee (5% Deposit Scheme) (likely eligible)5% deposit$700,000 is within the $1,000,000 cap for QLD (capital city and regional centres). Your participating lender and Housing Australia make the final determination.
- 5% deposit (2% for single parents and legal guardians). No LMI.
- Unlimited places and no income caps from 1 Oct 2025.
- Price cap for QLD (capital city and regional centres): $1,000,000.
- You own 100% of the home from day one.
- You can refinance freely.
- Available through participating lenders via Housing Australia.
Side by side
Sunshine Coast - Existing at $700,000.
| Item | Help to Buy | 5% Deposit |
|---|---|---|
| Upfront | ||
| Minimum deposit | $14,000 | $35,000 |
| LMI | Waived | Waived |
| Stamp duty (QLD estimate) | $0 | $0 |
| The loan | ||
| Your loan | $476,000 | $665,000 |
| Government contribution | $210,000 | None |
| Loan to value | 68.0% | 95.0% |
| You own | 70.0% | 100% |
| Repayments (30-year loan) | ||
| Monthly repayment | $3,231 | $4,514 |
| Interest over 10 years | $322,092 | $449,982 |
| After 10 years at 4% growth | ||
| Property value | $1,036,171 | $1,036,171 |
| Loan still owing | $410,368 | $573,309 |
| Government share repaid | $310,851 | None |
| Your property equity | $314,951 | $462,862 |
| Savings invested at 5% | ||
| Monthly saving invested | $1,283 a month | None |
| Deposit saving invested on day one | $21,000 | None |
| Total put in over 10 years | $174,949 | None |
| Investment growth | $58,851 | None |
| Investment pool | $233,800 | None |
| Total projected wealth | ||
| Property equity plus investments | $548,752 | $462,862 |
Bold marks the stronger figure where the two can be compared. The 5% Deposit column has no investment pool because its larger repayments go into the loan. If that buyer saved the same cash flow in an offset or side account instead, their total would sit between the two columns.
Projected wealth by year
Home equity for both, plus invested savings for Help to Buy. Try a higher investment return or lower growth to see the lines cross.
Estimates from standard loan formulas and published scheme rules. Stamp duty is approximate. Housing Australia and your lender decide eligibility, and the government's share is valued at sale. Data as of September 2026.
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Frequently asked questions
About this tool
I built this tool because I was going through the home buying process myself and found it hard to compare the Australian Government's Help to Buy and 5% Deposit schemes side by side, especially when factoring in what you could do with the money you save each month.
Most calculators only show you monthly repayments. This one goes further: it models property growth, remaining loan balances, the government's equity share over time, and what happens if you invest the monthly savings from Help to Buy's lower repayments. The goal is to give you a clearer picture of total wealth, not just monthly cash flow.
The figures here are estimates based on standard formulas and publicly available scheme rules as of 2026. Stamp duty calculations are approximate and may not reflect every concession or edge case. This tool is not financial advice. A qualified mortgage broker or financial adviser can help before you make any decisions.
Built by Software Engineer based in Australia. If you have feedback, suggestions, or spot something that needs fixing, reach out via email.
For illustration only. This tool does not constitute personal financial advice. Grant amounts, caps, and eligibility rules may change. Federal scheme caps shown are for capital city/regional centres and may differ for other areas. Always verify with your state revenue office and Housing Australia, and consider seeking independent financial advice before making decisions.