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

From October there will be no limit on how many first-home buyers can take advantage of the guarantee, with eligibility rules to be significantly expanded to boost property price caps and eliminate limits on applicants’ income. Photograph: Lisa Maree Williams/Getty Images

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.