Australia’s first-home buyer schemes. They look great.

2% deposit.
5% deposit.
30–40% government equity contribution.

But the modelling exposes the problem.

The 2% and 5% schemes reduce the deposit, not the loan amount.

For most buyers, they reach the deposit faster.

Then fail the loan application because the debt is too large for their income.

LOAN NOT APPROVED

The 30–40% government equity scheme goes further.

It reduces the loan enough to create an entry point for a 2-bedroom flat.

But the household still sits under heavy serviceability pressure, requiring 2 full incomes.

LOAN APPROVED

YOU BOTH NEED TO WORK FULL TIME
TO PAY THE MORTGAGE

So the finding is blunt:

2% deposit scheme: fails at loan approval.
5% deposit scheme: fails at loan approval.
30–40% equity scheme: you’re in, but serviceability, having kids, one hiccup and you’re in trouble.

These schemes do not fix affordability.

They shift the failure point.

There is a way.