An expert has slammed the new first-home buyer’s scheme as “bad policy”.

The Coalition has announced a $500 million scheme which will allow 10,000 first-home buyers with a minimum of a five per cent deposit to qualify for a loan.

Digital Finance Analytics Martin North tells Ross Greenwood he is sceptical of the policy.

“It doesn’t make a whole lot of sense to my mind.

“My research says that those who have not saved up… are three times more likely to default in the subsequent five years because they haven’t had the discipline of saving for that deposit in the first place.

“All of these factors suggest to me that this is more sort of a political signal than it is a fully thought out policy.”

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