I dont think there is anything wrong with borrowing above 90% for home loans. Yes I know people are going to reference america and GFC blah blah. But this is Australia and we have very different much lower housing affordability and better controlled intrest rates and bankruptcy laws.
I brought my first house 4 years ago when i was 24 with 100% finance. Now I have 2 the second one I came in with 20% I saved and a getting largish share portfolio. The reality was i need that foot in the door.
Older people would have you believe that most of them saved there deposits yet when you look closer a lot of them got half from their parents or though other means because that what the banks required. Now their being more realistic by realising that its not unreasonable for people to struggle to pay their rent and save 40k.
FHOG I think has been excellent for first homers I can tell you over half my friends are getting into their first homes now. These are not people who have no saving because they have lived in this 'want it all' generation as most 50 somethings would have you believe but people who may have done a trade, then went overseas then got married and now want a house.
