After three consecutive interest rate cuts, reducing mortgage rates to a record low, buyers are now returning to the market.
Treasurer John Frydenberg along with housing minister Michael Sukkar released the government's draft investment mandate for the First Home Loan Deposit Scheme.
“These incentives have helped thousands of first home buyers enter the market,” Sukkar said.
“In the past year, around 110,000 Australians bought their first home—the highest level since 2009.”
The program will only apply to owner-occupied principal-and-interest loans and only 5,000 guarantees will be available to the big banks.
The price caps will also apply to large regional centres with a population in excess of 250,000, namely the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Wollongong and Geelong.