Unpack Property
Grants - Tool 03

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.

  • About 4 minutes
  • Caps verified September 2026
  • Free, no sign-up

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

Who is buying?

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

It assumes $1,283 a month and the $21,000 smaller deposit are invested every month. It also leaves out the income trigger: at $120,000 combined income, if household income stays above $165,000 for two consecutive years, you may be required to buy back the government's share early.

You can use one scheme, not both

Help to Buy and the 5% Deposit Scheme cannot be combined on the same purchase. State grants and stamp duty concessions may still apply alongside either one.

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.

Help to Buy and the 5% Deposit Scheme compared on upfront costs, the loan, repayments and projected wealth
ItemHelp to Buy5% Deposit
Upfront
Minimum deposit$14,000$35,000
LMIWaivedWaived
Stamp duty (QLD estimate)$0$0
The loan
Your loan$476,000$665,000
Government contribution$210,000None
Loan to value68.0%95.0%
You own70.0%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$310,851None
Your property equity$314,951$462,862
Savings invested at 5%
Monthly saving invested$1,283 a monthNone
Deposit saving invested on day one$21,000None
Total put in over 10 years$174,949None
Investment growth$58,851None
Investment pool$233,800None
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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Tools people usually open after Scheme Comparison.

Frequently asked questions

The 5% Deposit Scheme (First Home Guarantee) lets you buy a home with as little as a 5% deposit without paying Lenders Mortgage Insurance, but you own 100% of the property from day one and take a larger loan. Help to Buy is a shared-equity scheme where the federal government co-purchases up to 40% of a new home (or 30% of an existing one), which cuts your deposit to just 2% and shrinks your loan significantly - but the government retains a proportional share of any capital growth, repayable when you sell or buy out their stake. The core trade-off is lower monthly repayments and deposit requirements with Help to Buy, versus keeping every dollar of future growth under the 5% Deposit Scheme.

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.

Data verified September 2026

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.