RBA Flags Mortgage Risk as ASX Dips

Reserve Bank Flags Higher Negative Equity Risk for 5 Percent Deposit Buyers as House Prices Decline

Auctioneer Karen Harvey counts down a bid during an auction of a residential property in Hurlstone Park in Sydney, Australia, on May 8, 2021. (Lisa Maree Williams/Getty Images)

Huge blow for homebuyers on Albo’s scheme

Aussies who bought their first house with the government 5% deposit scheme have been given bad news, following a new RBA report.

Home buyers in Labor scheme more likely to be falling behind: RBA

The central bank says people who bought into the market recently with small deposits were more likely to have homes worth less than their mortgages.

RBA Flags Mortgage Risk as ASX Dips

The Reserve Bank of Australia (RBA) has issued a significant warning regarding Labor’s 5 per cent deposit scheme, suggesting that recent purchasers entering the housing market with smaller deposits are considerably more likely to find their properties valued less than their outstanding mortgages. This phenomenon, known as negative equity, raises concerns for financial stability within