For a long time to buy a home in Australia you needed a 20 per cent deposit or you’d have to pay a big lender's mortgage insurance fee.

It’s asking a lot, given house prices in our major cities are around the million-dollar mark or more. 

This week, the government expanded a five per cent deposit scheme for first home buyers, with no income caps and more expensive homes now eligible. 

Today, finance expert Alan Kohler on how it works, what it means for house prices and why he’s a huge fan of the scheme. 

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Alan Kohler, ABC finance expert