CoreLogic finds flaws in first home buyer scheme

CoreLogic has exposed flaws in the government’s first home buyers deposit scheme.

Under the new scheme, first home buyers can apply for a loan with just a five per cent deposit, instead of 20 per cent.

CoreLogic’s head of residential research Eliza Owen has found it has an inadequately high-income limit, fails to address housing affordability and would end up costing a person more in interest over the life of the loan.

She tells Brooke Corte the 10,000 loans offered per year are too low.

“If we look at first home loan data we could see that in October there were over 10,000 people securing a first home buyer loan in the space of the month.

“So the amount of spaces that are available are limited.

“We do expect that property prices could continue to rise over 2020.”

Click PLAY below to hear the full interview

 

Image: Getty/DANIEL LEAL-OLIVAS