The scheme enables eligible buyers to purchase a home with as little as a 5% deposit, while avoiding lenders’ mortgage insurance (LMI).

Under the revised rules, a 63.1% of suburbs nationally now fall within the new price caps, nearly double the coverage under the previous thresholds. This includes 51.6% of house markets and 93.7% of unit markets, making it far easier for first home buyers to find a property that suits their budget and lifestyle.

According to economist Kaytlin Ezzy from research firm Cotality, the adjustments are long overdue. “Since the caps were last revised in 2022, values across the mid-sized capitals have grown significantly, which has seen first home buyers reliant on the scheme to purchase a house essentially priced out,” she said. “The new price caps are more in line with each region’s median values.”

Some of the most significant changes include:

• Sydney, Illawarra, Newcastle and Lake Macquarie: Cap increased by $600,000, from $900,000 to $1.5 million
• South East Queensland: Raised by $300,000 to $1 million
•  Adelaide: Lifted from $600,000 to $900,000

These revised limits have opened up new opportunities in areas that were previously out of reach. In Adelaide, for example, only 2.9% of suburbs qualified under the old cap, now that figure has jumped to 46.6%. In Brisbane, 97.5% of unit markets are now under the new limit, compared with just 36.9% before.

While there are concerns the expanded access could increase demand and place further pressure on prices, Ms Ezzy said the move is essential for improving equity in the market. “This will create a more equitable starting point and provide more options for those looking to get on the property ladder, particularly those who don’t have parental support,” she said.