Financial Review
Property prices in suburbs popular with first home buyers will jump more than the 0.5 per cent predicted by Treasury modelling in the short term after the rollout of the government’s new 5 per cent deposit scheme, economists and mortgage brokers say.
Labor’s election commitment took effect on Wednesday, expanding the First Home Guarantee so first buyers could avoid paying commercial lenders’ mortgage insurance for deposits as low as 5 per cent.
By abolishing the previous income limits of $125,000 for singles and $200,000 for couples, Treasury estimates it will make 70,000 people eligible in the first year from its accelerated October 1 start date, up from a maximum of 50,000 annual places previously.