First home buyers have been warned they could be more than $100,000 worse off if they take up the federal government’s five per cent deposit scheme unless they are already paying sky high rent. But finance experts have warned entering the market with a small deposit and 95 per cent home loan would increase mortgage repayments. She said a 20 per cent deposit of $200,000 would reduce mortgage repayments to $4500 per month based on the same rate. “The important thing for first home buyers to remember is the flip side of a five per cent deposit, is a 95 per cent home loan,” she told Sunrise. Camera Icon Some renters would be better off under the five per cent deposit scheme, a finance expert said.