GOVERNMENT FIRST TIME BUYER LOAN INEFFECTIVE WITH RISING HOUSING PRICES!

The government’s First Home Loan Deposit Scheme was launched in January 2020, well before inflation spiked. Now, however, house-price increases are eating into home buyer assistance plans, according to a report by The Australian.

Mostly used by buyers under 30, the government-guaranteed home loans allow the purchase of a property with as little as a 5% deposit and without the need to take out mortgage insurance. The government guarantees the difference between the buyer’s deposit and the 20% deposit threshold required by lenders.