The Inconvenient Truth About the 5% Deposit Scheme: Why Property Prices Will Rise

Wealthy Nations

Published on: 26/08/2025

The government’s 5% Deposit Scheme was designed to help first home buyers (FHBs) enter the market without the burden of saving a huge deposit or paying Lenders Mortgage Insurance (LMI). On the surface, it looks like a dream come true. But here’s the inconvenient truth: this scheme is going to push property prices higher than they should be.