Labor’s first home buyers scheme a ‘backwards step’ likely to push prices higher, experts warn

Treasury estimates new policy will only add 0.5% to home prices over six years, but some experts disagree

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Labor’s major new expansion to the home guarantee scheme will help first-time buyers who would have bought anyway, experts say, and is likely to push prices higher.

The scheme, which has been around since 2020, helps eligible first-time buyers get into the market with a deposit of as little as 5%, without the need to pay tens of thousands in lender’s mortgage insurance and taking years off the time required to save for a deposit.