Both the government and Labor agree that expanding the first home loan deposit scheme is one way to help people buy their own home, but some experts are worried it might address a symptom, not the cause, of soaring house prices.
Finding ways to help more people buy their own home has been a political challenge for decades.
However, some industry experts are worried that, while it might help address a symptom of rising house prices — the need for ever-larger deposits — it won't do anything to address the bigger problem.The biggest challenge most home-buyers face in trying to buy their own place is saving for a deposit. The scheme tries to reduce that burden, by allowing first home buyers to purchase with just a 5 per cent deposit, while the federal government acts as a guarantor for the other 15 per cent, allowing a lender to approve the loan without the need for LMI.