Deposit scheme fast-tracked for first home buyers

First home buyers in Sydney, Melbourne and Brisbane are set to benefit from a major shake-up to federal housing policy, with expanded access to the 5% deposit scheme arriving three months ahead of schedule.

From October, the federal government’s expanded First Home Buyer Guarantee will kick in, allowing eligible buyers to purchase a property with just a 5% deposit and no lenders mortgage insurance.

For many prospective home buyers, it means shaving years off the time it takes to save for a deposit and potentially saving tens of thousands in rent along the way.

The property price caps have also been lifted significantly. In Sydney, the cap jumps from $900,000 to $1.5 million. Melbourne’s rises to $950,000, and Brisbane’s to $1 million.

These new thresholds open the door to a much wider range of homes, including those in desirable suburbs that were previously out of reach under the old scheme.

For Sydney buyers, this could mean access to well-located apartments or townhouses in growth corridors like the Inner West or parts of the Northern Beaches.

In Melbourne, it brings suburbs like Preston, Bentleigh and even parts of the inner north into play.

And in Brisbane, buyers can now consider areas like Carindale, Wilston or even apartments in some riverfront pockets that were once off-limits.

Of course, this isn’t a silver bullet for housing affordability, but it’s a meaningful step – and one that aligns with broader market trends.

We’re seeing a shift in buyer behaviour, with more first-timers prioritising lifestyle, proximity to work, and long-term capital growth over sheer size. This scheme supports that shift.

At Metropole, we always advise clients to buy strategically, not emotionally. With the new deposit scheme, first home buyers have a rare opportunity to enter the market sooner and smarter.

But the key is to choose locations with strong fundamentals, including good infrastructure, employment hubs, and future growth potential.

If you’re considering buying your first home, now’s the time to get your finances in order, understand your borrowing capacity, and start researching suburbs that offer both affordability and upside.

The window of opportunity is opening and it’s looking brighter than it has in years.