First Home Buyer Scheme: Boosting Some, Fueling Price Rise
- Price caps for Australia's First Home Loan Deposit Scheme (FHLDS) and New Home Guarantee have been considerably increased,opening up homeownership to more prospective buyers.the changes, effective instantly, adjust...
- Under the revised scheme, houses in 130 Adelaide suburbs will now qualify, a substantial increase from the previous eight.
- Cotality economist Kaytlin Ezzy believes the increased caps will be welcomed by first-time buyers who have been struggling with affordability.
First Home Buyer Scheme Price Caps Increase Across Australia
Table of Contents
Updated September 10,2025,at 02:34 AM
What’s Changing?
Price caps for Australia’s First Home Loan Deposit Scheme (FHLDS) and New Home Guarantee have been considerably increased,opening up homeownership to more prospective buyers.the changes, effective instantly, adjust the maximum purchase price eligible for government assistance in major cities and regional areas.
Under the revised scheme, houses in 130 Adelaide suburbs will now qualify, a substantial increase from the previous eight. Similarly, units in 153 Brisbane suburbs are eligible, up from 58. Thes adjustments aim to align the caps more closely with median house values in each region.
| City | Previous Cap | New Cap |
|---|---|---|
| Sydney | $900,000 | $1.5 million |
| Melbourne | $800,000 | $950,000 |
| Brisbane | $700,000 | $1 million |
| Adelaide | $600,000 | $900,000 |
| perth | $600,000 | $900,000 |
| Hobart | $600,000 | $700,000 |
| Darwin | $600,000 | $600,000 |
| ACT | $750,000 | $1 million |
Expert Analysis: What This Means for Buyers
Cotality economist Kaytlin Ezzy believes the increased caps will be welcomed by first-time buyers who have been struggling with affordability. “For those first-time buyers that have been struggling to get into the market for a while and seeing options dwindle as prices increase, these increased caps will definitely be somthing that thay’re happy about,” Ezzy told AAP. She anticipates the scheme will allow buyers to enter the market sooner, reducing the need for a substantial 20% deposit or reliance on family financial assistance.
“It helps level that playing field,” Ezzy added, suggesting the changes will provide a more equitable opportunity for those without meaningful savings or family support.
Potential Consequences: Increased Demand and Shifting Caps
While the increased caps offer benefits to prospective buyers, experts warn that heightened demand could quickly erode the scheme’s reach. It is anticipated that approximately 100 suburbs will