Vic to Axe Stamp Duty for FHB

https://www.google.com.au/amp/www.9.../20/vic-stamp-duty-axed-for-first-home-buyers

No one professes to love paying taxes and we all know stamp duty is a major cash grab.

Vic FHB's will be celebrating with joy after this announcement, with the removal of stamp duty on sub 600-650 (around that) house prices.

So on a 600k house that is a 3.6% on-cost saving..

Sure it may be perceived as a good thing, but just like the FHBG back in 2009, it is my opinion that (at least for the short term) it will now inflate prices of houses in that price bracket as they are $21k more affordable. A considerable out of pocket amount..

So potentially people may be now dipping into LMI territory and borrowing more to buy that slightly better property because they do not have to find 21k of cash to settle with for stamp duty.
Apart from the increased affordability of this price bracket now, will we see an increased number of loans hitting higher LVR's - increased credit pressure on these people?
Will lenders step in and adjust lending policy to limit this?

What other peripheral factors to members think this will create?