Gov must find solution for first homebuyers conned by Labor’s 5% deposit scheme: Greens
2026-10-02
greens.org.au
The Greens say that the government needs to find a solution for first homebuyers who have been conned by Labor’s 5% home deposit scheme - encouraged to maximise borrowing at the top of the market, and now pushed into unsustainable debt.   

The timing of Labor’s interventions - getting first homebuyers into the market via the 5% deposit scheme, before making tax changes and letting inflation run wild, have cumulatively left first homebuyers at significant risk of negative equity.

Currently, the primary beneficiary of the scheme is the banks - who benefit from selling more and larger mortgages with even higher risk.

The Greens say that with interest rates rising and mortgages soaring, first homebuyers risk being forced out of their homes, left with significant debt and no home to show for it.

Attributable to Leader of the Australian Greens, Senator David Shoebridge:

“Thanks to Labor, first homebuyers risk being forced out of their homes, left with significant debt and no home to show for it.

“Labor created this problem and now they’ve got to fix it.

“Anthony Albanese has lured first home buyers into a scheme that’s left them trapped in debt and facing losing their home. The only winner here is the banks.

“House prices coming down will help more first homebuyers get into the market, once corporate profit fuelled interest rates come down - but Labor’s inaction means the banks are winning while everyone else is paying the price.

“Like all of Labor’s housing schemes, this wasn’t about helping people - it was a con to make it look like they’re doing something while pushing up prices for investors selling at the top of the market.”

Lines attributable to Greens spokesperson for finance, housing and homelessness and Senator for South Australia, Barbara Pocock: 

“Labor’s 5% deposit scheme was reckless. It has encouraged some of our lowest paid workers to take out very large loans at the top of the market. And now they are at risk of negative equity and that’s on Labor!

“First homebuyers under this scheme have been conned into massive debts. As interest rates continue to rise, they’re struggling to hold onto their home and risk owing the bank. Labor has screwed them.

“The government is letting corporate profit-driven inflation run wild, and it’s renters and first homebuyers who are paying the price.

“House prices need to fall if first homebuyers stand any chance of getting into the housing market. First homebuyers are typically in it for the long-haul, not a short-term investment. It’s the government’s responsibility to make sure first homebuyers drawn into Labor’s 5% deposit scheme aren't the ones paying the price.

“The Greens want Australia’s big banks to be required to offer low-interest mortgages for first homebuyer owner occupiers so that more of their early repayments go to paying off the loan, not to bank profits. 

“Our large banks are amongst the most profitable in the world and they have been making money from the financial stress of Australians for too long. It’s time the banks shouldered a fairer share of the costs facing younger generations entering home ownership.

The Australian greens get it right again.   :)

It was all caused by mass, uncontrolled immigration
of millions of people.

Something which the Greens support.

Greens con Australians again

Any thinking human being should have known what the outcome of the CGT changes would be. It is the ones caught out by buying before those announcements may need help.

whiteknight wrote on Oct 4^th, 2026 at 8:57am:

The Australian greens get it right again.   :)

Did the Greens support the original proposal?

One thing that will not fix this 'problem' is throwing more money at it, but something tells me that is exactly what the Greens have in mind.

Equity grows in a home over time - that will not change with reduced prices.... what MUST change is the costly venture to 'privatisation' that has caused cost rises in EVERYTHING it ever touched..  'private investment in housing' has lead - not to greater supply of homes - but to more and more funded house hoarding for some while the rest get nothing but another rental.

Social housing has historically descended into drug lord and similar slums..... specifically because of the very real need to try to 'house' those offside with our society and culture in the fervent, but pointless, hope of trying to bring them into the fold of decent human behaviour.  All you do by providing that kind with subsidised housing is feed their wrongs... like bringing the lowest into the UN in the hope of getting them involved in 'the family of Human' - it is a lost cause.

So - what do we do?  We have public housing projects in viable areas - you know - where people can get to work and there is work... and what then?  Do we differentiate between those who get to live there - saying 'this suburb is for good people - this one for losers who can feed off each other to their heart's content'? 

Again - our socially scienced society has deemed that to be unacceptable due to 'discrimination' - so the good and the bad and the outright ugly are all  'houso'd' into neat little packages regardless of their social values and behaviour, thus creating problems for good people in every way.

"How did your car get burned, Ach-med?"

"Aw - we went to do a drive-by house bombing, and stupid here forgot to open the window..."