Apr 1 • Property News & Updates
The 5% Deposit Scheme vs Help to Buy Scheme - Here's the key difference
A lot of first-home buyers are hearing about the 5% Deposit Scheme and Help to Buy right now, but they are not the same thing - and they do not solve the same problem. The real question is not which scheme sounds better on paper. It is which one actually helps with your biggest barrier to buying.
The 5% Deposit Scheme is generally the cleaner option for buyers who can afford the loan repayments but have not yet saved a full 20% deposit. It lets eligible buyers purchase with a 5% deposit and avoid lenders mortgage insurance, and since 1 October 2025 it has become much broader, with no place limits, no income caps, and higher property price caps in many markets.
Help to Buy is different. It is a shared-equity pathway, not just a low-deposit option. Buyers need at least a 2% deposit, and the government can contribute up to 30% for an existing home or up to 40% for a new build, which means the buyer borrows less. That can make a big difference for households where the deposit is manageable, but the full mortgage is too hard to service.
The trade-off is that Help to Buy comes with income caps, its own property price caps, and the reality that the government shares in the property's value. So for some buyers, the 5% Deposit Scheme may feel simpler because it preserves full ownership from day one. For others, Help to Buy may be the option that actually makes the numbers work.
In 2026, choosing between these schemes is not just about eligibility. Buyers still need to think about borrowing capacity, postcode-level caps, upfront costs beyond the deposit, and whether they are comfortable with full debt exposure or shared equity.
Read the full article here: How first-home buyers can use the 5% Deposit Scheme and Help to Buy in 2026
If you were buying your first home in 2026, which would matter more to you - getting in with a smaller deposit, or reducing the size of the mortgage itself?
Have you looked into either scheme, or already used one? Share your thoughts, questions or experience in the comments below.
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The 5% Deposit Scheme vs Help to Buy Scheme - Here's the key difference
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