There are three federal schemes, plus whatever your state or territory offers on top. They interact, some can be combined and some cannot, and the rules change. Here is what each one does, who it suits, and the details that catch people out.
The 5% Deposit Scheme
The Australian Government guarantees part of your home loan, so your lender does not charge Lenders Mortgage Insurance even though your deposit is well under 20%. You own the home outright from day one. It was formerly called the Home Guarantee Scheme, and it now covers two groups:
- First home buyers with a deposit of at least 5%.
- Single parents and legal guardians with a deposit of at least 2%. This part is not limited to first home buyers, which matters for women buying again on their own after a separation.
Since 1 October 2025 there are no income caps, no waitlists and no LMI. The government reports that more than 320,000 Australians have been helped since the scheme began in 2020.
Property price caps still apply, and they vary by location. Check the cap for the exact area you want to buy in before you make an offer, using the official price cap tool, and confirm it with your lender. You also cannot apply to the government directly. Applications go through a Participating Lender as part of your home loan.
There is an ongoing obligation to keep in mind. You must live in the home as your own. If you stop meeting the conditions, the guarantee can fall away and your lender may then require LMI.
Read about the 5% Deposit Scheme on firsthomebuyers.gov.au
Help to Buy
A different idea entirely. Rather than guaranteeing your loan, the government becomes a part owner. You need a deposit of at least 2%, and the government contributes up to 30% of the price of an existing home or up to 40% of a newly built one. Your loan is smaller, so your repayments are smaller, and there is no LMI. There are 10,000 places each year.
Your taxable income must be at or below $103,000 as an individual, or $165,000 for single parents and joint applicants, based on your most recent Notice of Assessment. These thresholds are indexed each year.
Help to Buy is open to Australian citizens only. Permanent residents are not eligible.
You also cannot own, or part own, any property in Australia or overseas. If your name is on a family property back home, even jointly, check this carefully before you plan around Help to Buy. There is a limited exception for single parents who co-own a property and intend to buy out the other owner or sell their share.
The trade-off is worth understanding plainly. The government's contribution is a share of your home, not a gift. When you sell, or when you buy back its share, you pay the government its percentage of the home's value at that time, so it shares in any gains or losses. You can buy back its share gradually as your finances grow.
Read about Help to Buy on firsthomebuyers.gov.au
First Home Super Saver
Save your deposit inside superannuation, where voluntary contributions are generally taxed at a lower rate than your income, then withdraw up to $50,000 plus associated earnings toward your first home. Yearly contribution limits mean it takes several years to build, so it rewards starting early. It can be used alongside the other schemes.
Read about the First Home Super Saver on firsthomebuyers.gov.au
State grants and stamp duty
Every state and territory runs its own First Home Owner Grant, and in 2026 all of them apply only to new homes, whether newly built, off the plan, or substantially renovated. Stamp duty concessions and exemptions for first home buyers are often worth more than the grant itself, and they apply to established homes in many states. These are the numbers that change most often, usually at state budget time.
firsthome.gov.au links to the current grant rules for every state and territory, and our support page lists each state revenue office.
Choosing between them
The 5% Deposit Scheme and Help to Buy are designed as alternatives rather than a combination. Broadly, the 5% Deposit Scheme suits a woman who can comfortably service a full loan and wants to own all of her home. Help to Buy suits a woman whose income limits what she can borrow more than her deposit does, and who is comfortable sharing some of the future value.
Help to Buy can be combined with state stamp duty concessions and grants, but not with state shared equity schemes or state guarantees. Use the official eligibility tools first, then talk to a Participating Lender or a mortgage broker who works with them.
Information in your language
The government publishes translated information about these schemes. If English is your second language, or you are helping a family member, the translated resources page is a good place to start.