The 5% Deposit Scheme
Housing Australia’s 5% Deposit Scheme lets eligible buyers purchase with a 5% deposit and no lenders mortgage insurance (LMI). The government guarantees up to 15% of the property value to the lender, according to CommBank’s scheme guide.
- ACT cap: $1,000,000 (Aussie).
- No income cap or place limit since 1 October 2025.
- First home buyers only, or buyers who haven’t owned residential property, land or a company title interest in Australia in the past 10 years.
- Australian citizens or permanent residents aged 18 or over.
- Owner-occupiers only. The scheme isn’t available for investment properties. Single parents and eligible single legal guardians can access a 2% deposit through the single parent stream, formerly the Family Home Guarantee.
- Both the purchase price and the lender’s valuation must sit at or below the cap. If you’re buying land and building under separate contracts, the land price plus build cost must come in under the cap.
Confirm the current cap for your postcode using the search tool on the Housing Australia website before you make an offer.
Help to Buy
Help to Buy is a shared-equity scheme that launched on 5 December 2025, according to the MFAA. The government co-owns part of your home.
- Deposit: minimum 2%.
- Government share: up to 30% for existing homes and 40% for new homes.
- ACT cap: $1,000,000.
- Income limits (2026–27): taxable income of $103,000 or less for individuals, and $165,000 or less for joint applicants (combined) and single parents, according to Home Loan Experts (updated 6 October 2026). The caps are indexed each 1 July; confirm with Housing Australia.
- Australian citizens only; you can’t own property anywhere.
- Places: 10,000 a year (MFAA).
- Lenders: according to Home Loan Experts, as of 6 October 2026 four lenders participate: Commonwealth Bank, Bank Australia, Teachers Mutual Bank Limited (including Health Professionals, Firefighters Mutual and UniBank) and Queensland Country Bank.
The trade-off
| 5% Deposit Scheme | Help to Buy | |
| Minimum deposit | 5% | 2% |
| LMI | No (if eligible) | No |
| Income test | None | Yes |
| Capital growth | All yours | Shared |
| ACT cap | $1,000,000 | $1,000,000 |
Help to Buy means a smaller loan and smaller repayments, but the government shares in any gain or loss in value until you buy its share back.
With ACT stamp duty relief
From 1 July 2026, eligible buyers under the ACT Home Buyer Concession Scheme pay no duty, with no income test or price cap (ACT Revenue Office). The five-year no-ownership and 12-month residence rules still apply.
Are scheme borrowers coping?
The RBA’s October Financial Stability Review said hardship or arrears among 5% Deposit Scheme participants “remain contained”. A small deposit still leaves little buffer if values fall, and Canberra values are down 1.6% over the year (Cotality).
What this means for you
- Check eligibility. Income often decides which scheme fits.
- Weigh the equity trade-off over 5–10 years.
- Test your repayments at a higher rate.
- Line up the ACT concession as well.
- Compare with help. See our first home buyer loans page or call 02 7245 4001.
Sources
- Australian Government, First Home Buyers (official scheme site) — https://www.firsthomebuyers.gov.au/
- Housing Australia — https://www.housingaustralia.gov.au/
- Aussie, State-by-state guide to buying with the Australian Government 5% Deposit Scheme — https://www.aussie.com.au/insights/articles/first-home-guarantee-5-percent-deposit-guide-by-state/
- CommBank, Australian Government 5% Deposit Scheme information guide — https://www.commbank.com.au/content/dam/commbank-assets/home-loans/govt-schemes/Australian-Government-5-percent-Deposit-Scheme-First-Home-Buyers-Information-Guide-1-OCT-2025.pdf
- MFAA, Help to Buy shared equity scheme launches — https://www.mfaa.com.au/news/mfaa-welcomes-help-to-buy-but-seeks-full-access-for-broker-clients
- CommBank, Australian Government Help to Buy Scheme — https://www.commbank.com.au/home-loans/australian-government-help-to-buy-scheme.html
- Home Loan Experts, Shared Equity Scheme / Help to Buy (updated 6 October 2026) — https://www.homeloanexperts.com.au/shared-equity-scheme/
- ACT Revenue Office, About the Home Buyer Concession Scheme — https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme/about-the-home-buyer-concession-scheme
- Reserve Bank of Australia, Financial Stability Review, October 2026, Chapter 2 — https://www.rba.gov.au/publications/fsr/2026/oct/resilience-of-australian-households-and-businesses.html
General information only. This article does not consider your objectives, financial situation or needs and is not credit advice. Seek personalised advice before acting. Figures are examples only. Credit Star — M.J. Siver trading as Credit Star Company, Credit Representative 506564 of BLSSA Pty Ltd ACN 117 651 760, Australian Credit Licence 391237.