The government’s 5 per cent deposit scheme aimed at boosting home ownership could push property prices higher, according to Reserve Bank Governor Michele Bullock, who said the bank would not take responsibility for the country’s house price issues.

Speaking to the senate economics committee in Canberra on Friday, Bullock said it was “possible” the scheme – which allows first home buyers to purchase a property with as little as a 5 per cent deposit without paying thousands of dollars in lenders mortgage insurance costs – would make housing more expensive.

“In the short term, it’s possible that housing prices might be a bit higher than they otherwise were,” Bullock said, although she noted the bank had not conducted its own analysis of the policy.

In August, the Albanese government expand

See Full Page