Buyers warned about rushing into government’s First Home Guarantee scheme

Predicted rate rises and falls in property values pose risks to those considering loans with a 5% deposit, experts say

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First-home buyers have been warned to plan carefully before taking advantage of a federal government scheme that would allow them to secure property with a 5% deposit, at a time interest rates are predicted to rise.

Experts say the First Home Guarantee scheme could be appropriate for people who plan to stay in one spot for a while and are comfortable riding out a possible property value trough, but warn it could still be risky, especially in regional areas.