The Daily Aus The new rules for first home buyers
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Sep 30, 2025 A new government scheme allows first-time buyers to secure homes with just a 5% deposit, a significant drop from the usual 20%. Critics argue this could inflate property prices and benefit the wealthy. Meanwhile, experts are warning of potential price jumps and increased competition in the housing market. There are concerns about the overall impact on housing affordability and supply challenges. As debates heat up, listeners are left wondering about the long-term effects of this initiative on the Australian dream of home ownership.
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Property Prices Far Outpace Incomes
- Australia's median dwelling price is around $850,000, making ownership increasingly unaffordable for many.
- House prices now sit at almost 10 times average household income, pushing buyers to borrow much more.
Aim For A 20% Deposit When Possible
- Save a deposit because banks typically prefer borrowers with a 20% down payment as a sign of low lending risk.
- Some lenders accept 10% or 5% deposits but expect lenders' requirements and contract terms to vary by state.
5% Deposit Tied To Regional Price Caps
- The new scheme lets first-home buyers use a 5% deposit if the property price falls under location-specific caps.
- Price caps vary by region, for example $1.5 million in Sydney and Newcastle but $600,000 in parts of regional Western Australia.