Forex

First-Home Buyers Using Five Per Cent Deposit Scheme at Risk of Negative Equity

Guavy AI Editorial Team Published October 1, 2026

Instruments

AUD

The Reserve Bank of Australia's Financial Stability Review has found that first-home buyers using the Albanese government's five per cent deposit scheme are more likely to be in negative equity than other groups.

The report, released two days after the RBA's fourth consecutive cash rate hike this year, highlights a concerning trend for low-income households.

These households are increasingly being forced to sell assets and work extra hours to make ends meet.

Prime Minister Anthony Albanese was asked about the 102,000 first-time buyers who have taken up the scheme and may now be in negative equity. He deflected, claiming that fewer people are currently in negative equity compared to figures under the previous government.

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