First‑Time Buyers Owe 95% on Homes as Prices Dive

The government’s five‑per‑cent deposit initiative was pitched as a shortcut to homeownership, but for many first‑time buyers it has become a financial cliff‑edge.

Those who jumped in now own properties that are worth less than the 95 % of the purchase price they still owe, as house prices have been falling faster than a bad cup of tea.

The situation has been made worse by the recent backflip on negative‑gearing – a policy shift that has stripped investors of a key tax break and added further pressure to an already bruised market.

Critics point out that Albanese’s promise that the scheme would be delivered “as a man of his word” feels as slippery as a freshly painted wet floor when the numbers don’t add up.

Until the market steadies, these buyers are left watching their mortgage balances outpace the value of the homes they thought would be their safe haven.