Expanded First Home Guarantee: Risks and Opportunities for Buyers

The expanded First Home Guarantee lets Australians buy with just a 5% deposit and no Lenders Mortgage Insurance. It’s a big opportunity, though RBA Governor Michele Bullock warns it comes with risk. Borrowing 95% of a home’s value leaves little equity. If prices fall, buyers could slip into negative equity, owing more than the property is worth. With income caps removed, debt levels are climbing and repayments are heavier. The RBA says while the government backs these loans, borrowers still carry the risk if values drop. At Prowealth Properties, we help clients act wisely in this shifting market. With many investors exiting due to rising costs and taxes, there’s new stock and opportunity for first-time and strategic buyers alike. Read the full article on our website to see how to use the 5% deposit scheme safely. Ready to buy smart? Book a free consultation for tailored advice before the window narrows.