The federal government's expanded first home guarantee has led to a 65% surge in first home buyer loans, according to recent data. The scheme, which waives lender's mortgage insurance for eligible borrowers with small deposits, took effect on Wednesday.
All first-time buyers are now eligible for the guarantee, though there are caps on loan values. The policy aims to reduce the savings wait time for those earning enough to pay off a home loan.
However, experts warn that the expansion could fuel further property price increases, with median values predicted to rise up to $85,000 higher than current levels by 2026.
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