The 5% First Home Loan Deposit Scheme worries me

When the sitting Australian government announced the 5% First Home Loan Deposit Scheme (matched by the opposition) in the lead up to the 2019 federal election, I winced.

From the start of 2020, up to 10,000 first home buyers a year can apply to the First Home Loan Deposit Scheme, with various property price limits being eligible around the country.