Australia holds rates at 3.6% as new scheme helps first-time buyers with 5% deposits, reducing savings time but raising debt risks.

The Reserve Bank of Australia is expected to hold interest rates at 3.6% amid rising inflation, delaying further cuts. Meanwhile, a new government scheme allows first-time homebuyers to purchase homes with just a 5% deposit, cutting savings time from over a decade to under three years in Sydney and years in other major cities. The policy aims to boost homeownership, reduce long-term rent payments—potentially saving up to $251,000 in Sydney—but raises concerns about increased debt and negative equity risks if prices fall.