PHOTO: Charlotte Stacey and Austin Pond are living with Austin’s parents while saving for their first home. ABC News

The Government’s first home loan deposit scheme is risky for first home buyers and unlikely to boost home ownership, some economists say.


  • For up to 10,000 people, the Government will guarantee the additional amount needed to reach a deposit of 20 per cent
  • Those first home buyers will be exempt from having to pay Lenders Mortgage Insurance
  • Available for singles earning less than $125,000 a year or couples earning a combined income of less than $200,000

One of the policies the Coalition took to the election was a scheme to lower the amount first home buyers need to save to buy a property.

Announcing the policy, Prime Minister Scott Morrison said it would enable first home buyers to access the market with a deposit of only five per cent.

The Grattan Institute’s Brendan Coates said the scheme did not guarantee first home buyers entry into the property market.

“The reality is we can only help first home buyers if someone loses, which means prices probably have to fall,” he said.