5% Deposits: A Game-Changer for Young Homebuyers

New Zealand's National Party has announced a policy that could change the housing market for young people. The party proposed allowing first-home buyers to put down a deposit of just 5% of the purchase price, instead of the usual 20%. This policy has been met with enthusiasm by many, including some who have previously thought owning a house was out of their reach.

The author notes that this policy is more practical and doable than others proposed during the campaign. They argue that 5% of a $700,000 house is only $35,000, which is a manageable amount for many young people.

The author also criticizes the Reserve Bank's decision to require 20% deposits in the past, saying it was an 'unhealthy fear of carnage'. They argue that banks should be trusted to make their own decisions about lending and that the central bank should not dictate policy.

The author believes this policy is a game-changer for young people who want to own their own homes. They hope that the message will get out to those who may have previously thought it was impossible for them to achieve their dream of home ownership.