Significant Cut from Deposit Save

More than four years could be cut from the time it takes first-home buyer couples to save a house deposit under a policy proposed by the Federal Government, new analysis shows.

The average FHB couple could buy a house four years and eight months quicker in Sydney, under Prime Minister Scott Morrison’s plan to offer loan guarantees to new buyers with deposits of just 5%. A single buyer could get there nine years and four months quicker.

Melbourne buyers could break into the market four years and three months earlier, while those in Brisbane, Canberra, Hobart and Adelaide could get on the property ladder at least three years earlier, Domain data shows.

“It makes it significantly easier,” says Domain senior research analyst Nicola Powell. “The comparison between the time taken to save a 20% deposit and a 5% deposit is pretty stark.” The figures are based on how long it would take couples saving 20% of their net pay to buy an entry level property with a 5% deposit, instead of a traditional 20% deposit.