Falling home prices leave low-deposit buyers owing thousands if forced to sell

Key points

• First-home buyers who used the government's 5 per cent deposit scheme in Sydney and Melbourne unit markets face the greatest risk of negative equity, according to a FoundIt report. Average home prices in both cities are more than 6 per cent below last year's levels.
• Buyers who entered the market shortly after the scheme's October expansion could owe tens of thousands of dollars after selling.
• Shadow Housing Minister Andrew Bragg called the expansion unfair, while a spokesperson for Minister Clare O'Neil said the scheme had saved buyers money.