Summary:
First-home buyers can now purchase a property with a deposit as low as 5%, but not everyone agrees it’s a positive development. This change has significant implications for hopeful homeowners.
What This Means for You:
- You can buy a home with a smaller upfront cost, increasing affordability.
- Be aware of the potential risks of smaller deposits, such as higher interest rates and mortgage insurance costs.
- Consider improving your financial situation while saving for a larger deposit to reduce long-term mortgage payments.
- Expect tighter regulations on lending, as critics argue that low deposits increase the risk of defaults and housing market instability.
Original Post:
First-home buyers can now get onto the property ladder with a deposit of as little as 5 per cent. But not everyone says it is a good thing.
