Overview

• From October 1, first‑home buyers can purchase with a 5% deposit as the government guarantees the remaining 15%, avoiding lenders mortgage insurance and saving up to about $65,000.
• Price caps rise to $1.5 million in Sydney and $950,000 in Melbourne, places are unlimited, and income limits are removed, though borrowers must still meet bank serviceability tests.
• Mortgage brokers report a jump in enquiries since the announcement and expect fiercer bidding once applications open, with early entrants likely to benefit most.
• Domain analysis indicates units in many inner suburbs are within reach, while freestanding houses are mostly limited to middle‑ring or outer areas, leaving many Sydney locations beyond the cap.
• Upfront costs remain material, including about $64,512 stamp duty on a $1.5 million NSW purchase and $52,070 on a $950,000 Victorian property, as the government highlights plans for 100,000 first‑buyer homes within a 1.2 million‑home target by 2029.