Repayment calculator
2%, 5% or 20% deposit? See the difference.
If you're an eligible first home buyer, a government scheme may let you start with a 2% or 5% deposit. A 20% deposit is still the standard way to borrow without lenders mortgage insurance. Compare estimated repayments for each option, then read how they work below.
Eligibility, income limits and price caps apply. Scheme details as at 31 October 2026.
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Your options
Three ways to fund your deposit.
Most buyers save a 20% deposit. Eligible first home buyers may be able to start with less through a government scheme. Whichever option you use, the lender still checks your income and expenses, and you need money for costs like stamp duty and fees.
Help to Buy
The government contributes up to 40% of the price of a new home for an equity share, so your loan is smaller.
- Lower repayments, because you borrow less
- No rent, repayments or interest on the government's share
- You can buy the share back over time, or repay it when you sell
- Income limits: $103,000 single, $165,000 joint or single parent
- The government shares in any rise or fall in the home's value
5% Deposit Scheme
The government guarantees part of your loan, so you avoid lenders mortgage insurance with a 5% deposit.
- You own 100% of your home
- No income limits and no cap on places
- Through participating lenders
- Bigger loan and repayments than Help to Buy
Standard home loan
The usual way to buy or build. With a 20% deposit, you generally avoid lenders mortgage insurance.
- Open to everyone, not just first home buyers
- No income limits or price caps
- You own 100% of the home
- With less than 20%, most lenders add lenders mortgage insurance
On top of either scheme
These can usually be combined with Help to Buy or the 5% Deposit Scheme.
- $10,000 First Home Owner Grant for a new home up to $750,000
- No stamp duty up to $600,000, and a concession up to $750,000
- With separate land and build contracts, duty is normally charged on the land price only
Price caps for both schemes: $950,000 in Melbourne and Geelong, $650,000 in the rest of Victoria (land and build combined). Citizenship, residency and other eligibility rules apply. A licensed broker confirms what you qualify for. New to all this? Read the first home buyer guide.
Paying for a new build
You pay in stages as your home is built.
With house and land, the land settles first. Your construction loan then pays the builder at each stage, and you usually pay interest only on the amount drawn so far. Full repayments start once the home is finished.
| Stage | When it's paid | Typical share |
|---|---|---|
| Deposit | When you sign the building contract | 5% |
| Base | Slab or footings finished | 10% |
| Frame | Frame up and approved | 15% |
| Lock-up | External walls, roof, windows and doors in | 35% |
| Fixing | Cabinets, doors and fittings in | 25% |
| Completion | Home finished and handed over | 10% |
Usual stages for a contract covering the whole build, from Consumer Affairs Victoria. Victoria's deposit and stage rules are changing, with new rules due to start by 31 March 2027. Your building contract sets out your exact stages.
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Explained
The schemes in plain English.
How does Help to Buy work for a new house and land package?
The government can contribute up to 40% of the price of a new home in exchange for an equity share, and you need a deposit of at least 2%. For house and land, the government's share is arranged at land settlement and it then contributes its share of each construction progress payment. Construction must start within 12 months of settlement and finish within 36 months, the land must be titled, and the build must be on a fixed-price contract.
Do I pay interest on the government's Help to Buy share?
No. There are no repayments, rent or interest on the government's share. You can buy it back over time or repay it when you sell, and the government shares in any rise or fall in the home's value.
What are the Help to Buy income limits?
From 1 July 2026 the taxable income limits are $103,000 for single applicants and $165,000 for joint applicants and single parents.
What is the price cap in Melbourne?
For both Help to Buy and the 5% Deposit Scheme, the cap is $950,000 in Melbourne and regional centres such as Geelong, and $650,000 in the rest of Victoria. For house and land, the land and build prices are added together. Check your exact postcode on firsthomebuyers.gov.au.
Do I get the First Home Owner Grant as well?
If you're a first home buyer building a new home worth up to $750,000 (land and build combined), the Victorian First Home Owner Grant gives you $10,000. When you build, it's usually paid at the first progress payment, so it reduces what you borrow for the build rather than counting towards your upfront deposit. You must live in the home for at least 12 months. It can generally be used alongside Help to Buy or the 5% Deposit Scheme.
How much stamp duty will I pay?
Victorian first home buyers pay no stamp duty on a property up to $600,000, with a concession up to $750,000. With house and land on separate contracts, duty is normally charged on the land price only, so many first home buyers pay little or no stamp duty. Your conveyancer confirms the exact amount.
How is the 5% Deposit Scheme different?
With the 5% Deposit Scheme you own 100% of your home and borrow up to 95%. The government guarantees part of the loan, so you avoid lenders mortgage insurance. There are no income limits, but your loan and repayments are bigger than with Help to Buy.
Are the repayments in the calculator what I'll actually pay?
No. They are rough estimates using the interest rate you enter. Your real rate, fees and eligibility depend on your lender and circumstances. The figures are principal-and-interest repayments once the home is finished. During construction you usually pay interest only on the amount drawn so far, and construction loan terms vary between lenders. A licensed broker can give you real numbers.
General information only, based on official scheme information as at 31 October 2026. Rules change, so check firsthomebuyers.gov.au and speak with a licensed broker. Raj Singh is not a mortgage broker or credit provider.