Australia’s central bank says people who buy their first home using the government’s 5% deposit scheme are more likely to end up in negative equity, according to a new Reserve Bank of Australia (RBA) report.
The RBA report examines outcomes for borrowers who enter the housing market with smaller deposits, comparing their risk of owing more than their home is worth against other groups. The key finding reported by both outlets is that these first-home buyers face a higher likelihood of negative equity, indicating greater vulnerability to house price falls and changes in borrowing costs.
Both PerthNow and The West Australian present the same core takeaway from the RBA: the 5% deposit program can leave participants more exposed if property values do not rise as expected. The coverage focuses on the RBA’s assessment rather than on policy changes, specific numerical thresholds, or any immediate response from the government or lenders.
