5% deposit vs Help to Buy vs Aussie Boost: Which option could help you buy a home sooner?

• From 1 Oct 2025, the 5% Deposit Scheme removes income caps, price caps, and place limits.

• Help to Buy offers a 2% deposit with shared equity but includes income caps, price limits and limited places.

• Aussie Boost uses a split loan structure which can help reduce or avoid high LMI premiums and support buyers with smaller deposits.

• State differences matter most for Help to Buy, and stamp duty concessions vary across Australia.

• An Aussie Broker can compare all three options and help you understand what may fit your budget. 
  

Saving for a home deposit can feel like the biggest hurdle for first-home buyers. The good news is there are now several pathways designed to help Australians get into a home with a smaller upfront deposit, but they all work in different ways.

Some options reduce the deposit you need. Some remove Lenders Mortgage Insurance (LMI). And some involve shared equity, where a partner (in this case, the government) takes a stake in the property to help bring your upfront costs down.

If you’re trying to work out which path might suit you, here’s a clear, simple guide to how the 5% Deposit Scheme, Help to Buy, and Aussie Boost differ, and how an Aussie Broker can help you compare them.

What’s changing and why this matters

For years, buying with a 5% deposit often meant paying LMI, higher repayments, or needing extra savings to get over the line. That’s now shifting.

• The 5% Deposit Scheme removed LMI for eligible buyers and, from 1 October 2025, won’t have income caps, price caps or limited places.

• Help to Buy introduces a federal shared-equity model where the government contributes part of the purchase price, lowering the loan you need.

• Aussie Boost uses a split loan structure which can help reduce or avoid high LMI premiums and support buyers with smaller deposits, while keeping full ownership.

Each option opens a different door, but the right door depends on your deposit, income, location and long-term plans.

Here’s how the main schemes compare at a glance, before moving into the deeper breakdown of each one.

Key differences at a glance: Deposit, ownership, caps, availability

The 5% Deposit Scheme: A simpler way to buy with less

If you’ve saved a 5% deposit (2% for eligible single parents or legal guardians under the Single Parent 2% Deposit Scheme), the 5% Deposit Scheme can help you buy without paying LMI.

From 1 October 2025, the scheme becomes even easier to access:

• No income caps

• No property price caps

• No limit on places

You still take out a standard home loan, and you own the property outright. The government simply provides a guarantee to your lender, so you don’t need to pay LMI.

Who it may suit: Buyers who want to keep full ownership and prefer a straightforward loan structure, but don’t have a large deposit saved yet.

Help to Buy: Shared equity that lowers the loan you need

Help to Buy launches on 5 December 2025 and takes a different approach. Instead of guaranteeing part of your loan, the government contributes part of the purchase price.

• Up to 40% for new homes

• Up to 30% for existing homes

• Minimum 2% deposit required

Because it’s shared equity, the government owns that same percentage of your home, and you’ll share the gains or losses when you sell or when you buy back its share.

There are a few rules to keep in mind:

• Income caps apply

• Property price caps vary by state and region

• Places are limited to 10,000 a year

• Only available in states where legislation has passed (currently NSW, VIC, QLD, SA, ACT and NT)

Who it may suit: Buyers who have a small deposit and meet the income and price caps, and who want lower repayments upfront, and are comfortable with shared ownership.

Aussie Boost: Deposit support without shared equity

Aussie Boost is a national offering available through Aussie and powered by OwnHome.

It’s not a government scheme, it’s a homeownership pathway designed to support eligible buyers who have a smaller deposit but want to keep full ownership of their home.

Aussie Boost uses a split loan structure, made up of:

• A Boost loan (up to 20% of the property price, subject to caps and eligibility)

• An 80% home loan with a participating lender

This structure can help reduce or avoid high Lenders Mortgage Insurance (LMI) premiums and may help buyers enter the market sooner.

A few important things to understand

• You will still need genuine savings of at least 2% of the property value, and any additional upfront costs (e.g., stamp duty, legal fees) are not covered by the Boost loan.

• Aussie Boost has its own lending criteria, including credit requirements, loan limits and property type suitability.

• It is generally available to buyers who do not currently own property, with some restrictions for investor borrowing.

• There are no government price caps or income caps, but product limits and serviceability rules apply.

Who it may suit: Buyers who want to reduce LMI costs, keep full ownership, and use a structured deposit-support solution instead of a shared-equity model, provided they meet the eligibility and lending criteria.

Which option could work for you?

Here are a few things to consider as you narrow it down:

• Do you want full ownership from day one?

• Are you relying on lower repayments upfront?

• Does your income meet Help to Buy’s caps?

• Does your preferred suburb fit within the price limits?

• Are you looking for a path that avoids LMI?

These questions can help point you toward the right pathway, but you don’t need to figure it all out yourself.

An Aussie Broker can compare all three options, show how each one affects your upfront costs and repayments, and help you understand which pathways you may be eligible for.

Ready to explore your options?

Talking with an Aussie Broker is a great way to get clarity before you make your next move.

They can:

• Help you compare the 5% deposit scheme, Help to Buy and Aussie Boost

• Check eligibility and explain the differences in plain language

• Look at your state’s stamp duty rules and how they affect your budget

• Support you with pre-approval and the application process

Book a free^ chat with an Aussie Broker today.