The 5% Scheme, Help to Buy, and what you can actually combine.

The 5% Deposit Scheme, after 1 October 2025

For eligible first home buyers: 5% deposit, no Lenders Mortgage Insurance, nationwide. The federal government removed income caps and place limits.¹ You apply through a participating lender; the government acts as guarantor for the missing 15%.

• Waives the LMI premium (often five figures on a sub-20% deposit).
• On a $700,000 home, that's a $35,000 deposit instead of the $140,000 a standard 20% loan asks for.
• Available in every capital city and growth corridor, subject to property price caps.

Help to Buy, opened 5 December 2025

In participating states and territories, the federal government takes a shared-equity stake of up to 40%. You contribute as little as 2% deposit. You make repayments on the share you own; the government's share sits behind it.³

• Lower deposit and lower loan than the 5% Scheme.
• You don't fully own the property. The government's share moves with the property's value.
• Conditions apply to what you can do with the property over time.

Why they don't combine

The two schemes are mutually exclusive.⁴ You pick one path:

What does stack

• 5% Scheme + FHSS. Super contributions boost your deposit; the 5% Scheme handles the loan.⁶
• 5% Scheme + FHOG (new builds). Where state FHOG eligibility applies, both can sit together.
• FHOG + state stamp duty concession. State schemes generally stack with each other.

The bottom line

If you can save the 5% deposit and want to fully own your home, the 5% Scheme is usually the cleaner path. If your savings are closer to 2% and you're comfortable with co-ownership, Help to Buy can get you in faster.

Found something off? Use the contact form and corrections appear in the next edition.