# RBA warns five per cent deposit buyers face risk of negative equity

- URL: https://talkfuse.com/story/the-full-scale-of-albos-betrayal-of-5-deposit-first-home-buyers-is-now-clear-just-look-at-who-he-chose-to-protect-pvo/
- Published: 2026-10-31T11:58:13+00:00
- Updated: 2026-10-31T12:13:34+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16251157/albo-home-buyers-negative-equity-housing-policy-reversal.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: Government, Politics, World

## Key points

- Albanese ruled out tax changes before the election.
- Later reforms and higher rates have pushed house prices down.
- Recent five per cent deposit buyers face negative equity risk.

## Summary

Prime Minister Anthony Albanese urged Australians to buy their first homes with a five per cent deposit before the 2025 election, while ruling out changes to negative gearing and capital gains tax. After the election, his government expanded the deposit scheme and later announced tax changes that, alongside higher interest rates, have contributed to falling house prices. The article argues that recent buyers who borrowed heavily may now owe more than their homes are worth, raising questions about the timing of the policy shifts and the assurances given to voters.

The Reserve Bank’s latest financial stability review says recent borrowers with high loans relative to property values, particularly participants in the deposit scheme, are at risk of negative equity. The government guarantee on these loans protects lenders, not homeowners, and taxpayers could face costs if borrowers default. The article acknowledges that housing tax reform may improve affordability for future buyers, but says the government should have set out its plans before the election and before encouraging buyers into the market.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.