Nearly 1,500 properties bought using Australia’s first home buyers' 5% deposit scheme converted into investments
News Source
•Wed, 05 Aug 2026 15:00:23 GMT
📰 What Happened
Nearly 1,500 homes bought through Australia's 5% deposit scheme have been turned into investments. The scheme lets first-time buyers borrow 95% of a property's value. The government guarantees the loan, so buyers skip costly mortgage insurance. High-income borrowers used it too, including one couple earning $674,000 a year. Housing Australia supplied the figures after a Senate question.
🔍 The Backstory
The scheme began in 2020 to help lower-income first-time buyers get a first home. It has handed out more than 208,000 guarantees since then. Critics now say it also helps the wealthy and property investors. The Greens want the program to stop benefiting people who already own homes and start focusing on those who need it most.
🎯 Why It Matters
Housing is one of the biggest costs in Australian life. If a scheme meant for first buyers helps investors instead, getting a first home becomes even harder.
Nearly 1,500 homes bought through Australia's 5% deposit scheme have been turned into investments. The scheme lets first-time buyers borrow 95% of a property's value. The government guarantees the loan, so buyers skip costly mortgage insurance. High-income borrowers used it too, including one couple earning $674,000 a year. Housing Australia supplied the figures after a Senate question.
The scheme began in 2020 to help lower-income first-time buyers get a first home. It has handed out more than 208,000 guarantees since then. Critics now say it also helps the wealthy and property investors. The Greens want the program to stop benefiting people who already own homes and start focusing on those who need it most.
Housing is one of the biggest costs in Australian life. If a scheme meant for first buyers helps investors instead, getting a first home becomes even harder.