First Home Guarantee vs Help to Buy | What’s the Difference? | QLoans.au
The First Home Guarantee (FHBG) has been massively expanded with unlimited spots and no income caps, while the Help to Buy (Shared Equity) scheme has officially launched to assist those with lower borrowing power.
As of January 2026, the Australian Government has made significant changes to its homeownership programs. Here is the side-by-side comparison with the most recent updates.
First Home Guarantee vs. Help to Buy
| Feature | First Home Guarantee (FHBG) | Help to Buy (Shared Equity) |
| Minimum Deposit | 5% (or 2% for single parents) | 2% |
| Govt Contribution | 15% Guarantee (acts as deposit) | 30% (existing) or 40% (new) Equity |
| Income Caps | None (Removed Oct 2025) | Individuals < $100k; Couples < $160k |
| LMI Payable? | No | No |
| Ownership | You own 100% of the home | Govt owns a 30–40% “share” |
| Places Available | Unlimited | 10,000 places per year |
| Eligibility | First home buyers or 10yr+ non-owners | First home buyers or previous owners |
| Repayment | Full mortgage repayments | Reduced repayments (smaller loan) |
Property Price Caps (2026 Update)
The price caps for these two schemes are different in several states. The First Home Guarantee generally allows for a higher purchase price in major cities like Sydney.
| State / Territory | First Home Guarantee Cap | Help to Buy Cap | Rest of State (Both) |
| NSW (Sydney/Regional Centers)* | $1,500,000 | $1,300,000 | $800,000 |
| VIC (Melbourne/Geelong) | $950,000 | $950,000 | $650,000 |
| QLD (Brisbane/Gold Coast/Sunny Coast) | $1,000,000 | $1,000,000 | $700,000 |
| WA (Perth) | $850,000 | $850,000 | $600,000 |
| SA (Adelaide) | $900,000 | $900,000 | $500,000 |
| TAS (Hobart) | $700,000 | $700,000 | $550,000 |
| ACT (All Areas) | $1,000,000 | $1,000,000 | N/A |
| NT (All Areas) | $600,000 | $600,000 | N/A |
Key Takeaways
- Choose the 5% Deposit Scheme if: You have a stable, higher income and want to keep 100% of the profit when the property value goes up. It is also the only choice if you earn over $100k as a single.
- Choose Help to Buy if: Your borrowing capacity is the main hurdle. If the bank won’t lend you enough for the home you need, the government’s 30–40% contribution “bridges the gap” and keeps your monthly mortgage payments much more affordable.
Your first home might be closer than you think.
Unsure how much you can borrow or which government grants you qualify for?