Tens of thousands of aspiring homeowners are likely to miss out on a new government scheme that would allow them to purchase a home with a 5 per cent deposit.
The new First Home Loan Deposit Scheme, should help first home buyers enter the property market sooner, by providing 10,000 eligible Australians per year access to a home loan with a deposit of as little as 5 per cent.
However, with over 100,000 first home-owners a year, some are questioning whether 10,000 grants are enough.
And, with the recent demand-boom in the property market, some fear that the gap will get worse. In September, loans to first-time buyers, jumped 5.2 per cent to 9,869.
The scheme will be rolled out in three months and many brokers are advising their clients to get finance-ready. With a finite number of grants, it is likely that funds will be exhausted quickly in a growing property market.