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  • 4 months ago
First home buyers are now able to buy more expensive homes with just a five per cent deposit regardless of how much money they earn. Property analysts warn the policy will add heat to an already hot property market while the government claims price increases will be modest.

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00:00Who said the dream of owning your own home was dead?
00:07It's apparently an unkillable plant.
00:10This 27-year-old and the Prime Minister's own electorate bought this year with just a 5% deposit,
00:17with the Federal Government guaranteeing the other 15%.
00:20Well not having to pay mortgage insurance makes such a big difference.
00:25From today that scheme will expand, with income and place limits scrapped.
00:30First home buyers will also be able to purchase more expensive properties.
00:35Treasury forecasts the scheme will only add half a percent to values over six years.
00:40What that's likely to do is add demand into a red-hot property market
00:46and without a correlating increase in supply, property prices are likely to go up even further.
00:52National prices are already surging, up 0.8% in September and 4.8% for the year.
01:00With first home buyers taking on bigger loans and more interest,
01:04banks are competing hard to get a slice of the first home guarantee scheme market.
01:09With lenders offering discounted variable interest rates,
01:13Canstar says the average is about 5.4%.
01:17If people are paying, if they're having larger mortgages, isn't that a boon for banks?
01:21Well, they're not having larger mortgages.
01:24They're having a mortgage rather than paying off someone else's mortgage.
01:28Maria Hondrianas eventually wants someone else to pay off her mortgage.
01:33I hope this turns into an investment one day and I can use equity, go buy something else.
01:39It's only possible if she pays down the loan or the value of her property goes up.
01:44Well, it always shows up.
01:51www.ée-dradayourg
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