Past-year update / HOUSING POLICY / SHARED EQUITY
Help to Buy opened in December 2025: how is it different from a 5% deposit guarantee?
Help to Buy is a shared-equity scheme that opened in participating locations on 5 December 2025. It works differently from the government’s 5% Deposit Scheme.
Help to Buy involves a government contribution toward an eligible home purchase, reducing the mortgage amount. The 5% Deposit Scheme instead provides a government guarantee on part of a participating lender’s loan. They are different forms of support with different eligibility and obligations.
What launched?
The Australian Treasury said the Help to Buy Scheme opened for applications on 5 December 2025 in participating states and the territories. The program is intended to support 40,000 households to buy a new or existing home with a government contribution.
Whether a state participates depends on its implementing legislation. Applicants need to check their location and the current scheme rules rather than assume nationwide access.
How does it differ from the 5% Deposit Scheme?
Help to Buy is a shared-equity arrangement: the government contributes to the purchase, so the buyer may need a smaller mortgage. The 5% Deposit Scheme is a guarantee supporting an eligible borrower’s home loan with a lower deposit and no Lenders Mortgage Insurance.
The ownership and future payment implications of shared equity should be understood before choosing it. This overview does not assess whether either scheme suits a particular buyer.
What should a buyer check first?
Confirm the participating jurisdiction, current income and property requirements, available places and participating lender. Then compare the full mortgage and the shared-equity obligations with other options.
- Read the official scheme guide and current terms.
- Ask how the government contribution would be repaid or adjusted over time.
- Confirm whether the lender and product you intend to use can participate.
Official sources
- Australian Treasury — supporting people into home ownership ↗
- Australian Government — Help to Buy customer guide ↗
- Australian Government — 5% Deposit Scheme ↗
This article explains a past announcement and is not personal credit, legal or financial advice. Confirm current participating jurisdictions, eligibility and product availability before approval.