If you want to buy a home in Australia with a low deposit, you have two major government-backed paths: the Help to Buy Scheme and the Home Guarantee Scheme. Both options allow you to bypass costly Lenders Mortgage Insurance (LMI), but they work in fundamentally different ways.
As of 1 July 2026, the Help to Buy scheme has expanded its income limits and is in full nationwide rollout. Let’s compare these programs side-by-side to find out which one is right for you.
Key Differences: Help to Buy vs Home Guarantee Scheme
The main difference between the two programs comes down to home equity:
Help to Buy is a shared equity scheme. The government co-purchases up to 40% of the property with you. You need a 2% deposit, and your mortgage repayments are much lower because your loan size is smaller. However, the government owns a proportional stake in your home.
The Home Guarantee Scheme is a guarantor scheme. You need a 5% deposit, and the government acts as a financial guarantor for the remaining 15% to avoid LMI. You still own 100% of your home and keep all capital gains, but you must borrow a larger amount from the bank.
Quick Comparison Table
| Feature | Help to Buy Scheme | Home Guarantee Scheme |
|---|---|---|
Minimum Deposit | 2% | 5% |
Government's Role | Co-purchaser / Shared Equity partner | Financial Guarantor (up to 15%) |
Do you pay LMI? | No | No |
Government Share | Up to 40% (new builds) or 30% (existing homes) | 0% (You retain 100% ownership) |
Annual Places Available | 10,000 new places for the 2026-27 FY | 35,000 places each year |
First Home Buyers Only? | No (available to non-property owners) | Yes (with limited exceptions) |
2026 Income Limits |
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Help To Buy Vs Home Guarantee Scheme: Which Is Better For Me?
Choose Help to Buy if:
- You have minimal savings: You only need a 2% deposit instead of 5%.
- You have a lower income: Because the government chips in up to 40% of the purchase price, your total loan amount is significantly smaller. This makes it much easier to pass a bank’s borrowing capacity and serviceability tests.
- You want lower monthly repayments: A smaller mortgage translates directly to lower monthly loan repayments and less total interest paid over time.
Choose Home Guarantee Scheme if:
- You want 100% ownership: You keep all the equity and capital gains when your property value increases over time.
- Your income is higher: The income limits allow singles earning up to $125,000 and couples up to $200,000 to apply.
- You want a faster application process: With 35,000 spots available annually compared to Help to Buy’s 10,000 spots, competition for placements is generally less fierce.
See What Your Low Deposit Can Achieve!
Unlike traditional calculators, the 360° Home Loan Assessor offers a full breakdown of your borrowing capacity, deposit contribution, and costs involved. Find out how close you are to approval and explore flexible low-deposit loan options.
Get StartedWhich Scheme Offers Higher Price Caps
| Region | Price Caps For Help To Buy | Price Caps For Home Guarantee Scheme |
|---|---|---|
| NSW – capital city & regional centres | $1,300,000 | $1,500,000 |
| NSW – rest of state | $800,000 | $800,000 |
| VIC – capital city & regional centre | $950,000 | $950,000 |
| VIC – rest of state | $650,000 | $650,000 |
| QLD – capital city & regional centre | $1,000,000 | $1,000,000 |
| QLD – rest of state | $700,000 | $700,000 |
| WA – capital city | $850,000 | $850,000 |
| WA – rest of state | $600,000 | $600,000 |
| SA – capital city | $900,000 | $900,000 |
| SA – rest of state | $500,000 | $500,000 |
| TAS – capital city | $700,000 | $700,000 |
| TAS – rest of state | $550,000 | $550,000 |
| ACT | $1,000,000 | $1,000,000 |
| NT | $600,000 | $750,000 |
NT – rest of Territory | NA | $600,000 |
Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
12 Steps To Home Loan Approval And Beyond
Your Step-By-Step Roadmap From Applying For A Home Loan To Finally Moving In
We Can Help You Secure A Place
The Help To Buy and Home Guarantee Scheme offer different benefits and price caps for home buyers. Whichever scheme works for you, our mortgage brokers can help you get approved for a home loan. Call us on 1300 889 743 or complete our free assessment form.
Frequently Asked Questions (FAQs)
Is the Help to Buy scheme currently active?
Yes. The Help to Buy scheme officially opened on 5 December 2025. Following its expansion to Tasmania in June 2026, it is fully active across all Australian states and territories.
What are the new Help to Buy income limits for 2026?
Can you switch from Help to Buy to full ownership later?
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