Australian 5% deposit scheme backs 39,704 loans after income caps removed

Data prepared for Senate estimates and obtained by Guardian Australia show 13,979 of those loans went to single borrowers earning more than $125,000 or joint borrowers earning more than $200,000.

Participation and income distribution Single-borrower loans totaled 15,924 and joint loans totaled 23,790. Nearly 1,000 single applicants earned $200,000 or more, and 1,251 joint applicants earned a combined $275,000 or more. The former income limits of $125,000 for singles and $200,000 for couples were lifted to fulfill an election commitment.

Price and activity trends Property prices for homes below the new regional caps rose faster after the scheme expanded, according to Cotality data. Homes above those caps had previously shown stronger growth. Australian Bureau of Statistics figures indicate first-home buyer loans averaged 10,181 per month from October to March, up less than 3% from the prior six-month average of 9,900.

The scheme averaged 5,670 loans per month during the same period. First-home buyer activity has since declined as the broader housing market slowed.