Key takeaways
• The 2026-27 Federal Budget included new housing measures aimed at supporting first home buyers
• Eligible buyers may be able to purchase with a smaller deposit through government schemes or lender offers
• Help to Buy uses shared equity, while the 5% Deposit Scheme and Aussie Boost work differently
• Eligibility, borrowing requirements and long-term costs vary depending on the option you choose
Update (1 July 2026): The Australian Government expanded the Help to Buy Scheme from 1 July 2026, increasing the income thresholds and maintaining the current property price caps under the expanded scheme. If you're comparing low-deposit options, it's worth checking the latest eligibility requirements before applying.
Saving a large deposit can be one of the biggest challenges for first home buyers.
To help more Australians enter the property market sooner, there are now several low-deposit pathways available, including government-backed schemes and lender-supported options.
Three low-deposit pathways buyers may come across are the 5% Deposit Scheme, the Australian Government’s Help to Buy Scheme and Aussie Boost.
While all three may help eligible buyers purchase with a smaller deposit, they work in very different ways. Here’s what buyers should know when comparing the options.
What changed in the 2026 Federal Budget?
The 2026-27 Federal Budget included several housing measures aimed at improving housing affordability and supporting more Australians into home ownership.
Alongside continued support for first home buyer programs, the government also announced:
support for eligible first home buyers purchasing with a 5% deposit
proposed changes to negative gearing and capital gains tax for some property investors
a $2 billion Local Infrastructure Fund to help unlock new housing supply
funding aimed at speeding up planning and environmental approvals
The government says the measures are intended to improve housing supply and help more Australians enter the property market over time.
For some buyers, schemes like the 5% Deposit Scheme and Help to Buy may become part of a broader range of pathways into home ownership.
What is the 5% Deposit Scheme?
The 5% Deposit Scheme is the new name for the Australian Government's Home Guarantee Scheme.
Eligible buyers may be able to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), because the Australian Government, through Housing Australia, guarantees part of the loan.
Under the scheme:
Buyers borrow the remaining amount from a participating lender
Buyers own 100% of the property
Property price caps apply (there are no income caps)
Eligibility rules apply, including a property price cap and a 10-year property ownership test
The scheme is designed to help eligible buyers purchase sooner without needing a traditional 20% deposit.
What is the Help to Buy Scheme?
The Help to Buy Scheme is a federal shared equity program designed to support eligible Australians into home ownership.
Under Help to Buy:
Eligible buyers can purchase with a minimum 2% deposit
The Australian Government can contribute up to 30% for an existing home or up to 40% for a newly built home
Buyers take out a smaller mortgage because the government contributes part of the purchase price
The government holds an equity share in the property
From 1 July 2026, higher income thresholds apply, subject to the scheme's other eligibility requirements.
Because the government contributes part of the purchase price, buyers do not fully own the property initially. The current Help to Buy property price caps continue to apply and vary depending on where you're buying.
You might also be interested in: Help to Buy Scheme: Everything you need to know
What is Aussie Boost?
Aussie Boost is a low-deposit home loan option available through selected lenders on the Aussie panel.
Depending on the lender and eligibility criteria, some buyers may be able to purchase with a smaller deposit than a standard home loan.
Unlike Help to Buy, Aussie Boost is not a shared equity scheme. Buyers own 100% of the property. Eligibility requirements, lender policies, borrowing limits, and available features vary depending on the lender and product selected.
An Aussie Broker can help you compare available options and explain how lender requirements may differ.
How do the options compare?
Feature | 5% Deposit Scheme | Help to Buy | Aussie Boost |
Minimum deposit | 5% | 2% | Varies by lender |
Government contribution | No | Yes | No |
Shared equity | No | Yes | No |
Buyer owns 100% of property | Yes | No | Yes |
LMI waived/avoided | Generally yes for eligible buyers | Depends on lender structure | Depends on lender |
Property caps apply | Yes | Yes | Depends on lender |
Income caps apply | No | Yes | Depends on lender |
Participating lenders required | Yes | Yes | Yes |
Sources: Australian Government 5% Deposit Scheme, Australian Government Help to Buy Scheme
Help to Buy income thresholds increased from 1 July 2026. Property price caps continue to apply and vary by location. Check the latest eligibility requirements before applying.
Which option may suit different buyers?
The right option will depend on your deposit, borrowing capacity, long-term goals, and how comfortable you are with shared equity arrangements.
The 5% Deposit Scheme may suit buyers who:
want to avoid LMI
want full ownership of the property
meet the property price caps
can manage repayments on a larger loan amount
Help to Buy may suit buyers who:
have a smaller deposit
may benefit from a lower loan amount
are comfortable with the government holding an equity share in the property
meet the scheme's income, property price and eligibility requirements
Aussie Boost may suit buyers who:
want flexibility outside government scheme caps
are exploring lender-specific low-deposit options
want to compare a broader range of loan structures and features
Because every buyer’s situation is different, it may help to compare the long-term costs, borrowing limits and ownership structures before making a decision.
You might also be interested in: 2026 Federal Budget - What borrowers need to know
What should buyers consider before choosing?
Low-deposit pathways can help buyers enter the market sooner, but there are still important costs and risks to understand.
Things to consider may include:
monthly repayments
interest rates and loan features
borrowing capacity
whether LMI applies
ongoing scheme obligations
future refinancing flexibility
property price caps and location restrictions
With Help to Buy specifically, buyers should also understand how shared equity works and how the government’s ownership share may affect future repayments or sale proceeds.
How do you apply?
Applications for the 5% Deposit Scheme and Help to Buy are generally submitted through participating lenders, who assess eligibility before progressing an application under the relevant scheme.
The process may include:
Checking eligibility
Understanding your borrowing capacity
Comparing available schemes and lender options
Applying through a participating lender or broker
Finding an eligible property
With several low-deposit pathways now available, comparing the options can feel overwhelming, especially when eligibility rules, property caps and lender requirements differ between schemes.
An Aussie Broker can help you understand how the 5% Deposit Scheme, Help to Buy and lender-backed options like Aussie Boost compare based on your deposit, borrowing capacity and long-term plans.
Book a free^ appointment with an Aussie Broker online or in store.
