The proposed plan would raise the price cap for properties eligible under this existing scheme to include higher-priced homes in places like Sydney and Melbourne and will scrap the income test.

In Sydney, the property price limit would be raised from $900,000 to $1.5 million and in Melbourne, the limit changes from $800,000 to $950,000.

If re-elected, PM Anthony Albanese said it would allow a Sydneysider to buy a $1 million apartment with a $50,000 deposit or a Queenslander to buy a $850,000 property with just $42,000.

The government expects this will save Australians an average of $23,000 on Lenders Mortgage Insurance and cuts the time needed to save for a deposit.

The federal government also said it will invest $10 billion into building 100,000 homes reserved for first homebuyers to address the housing shortage.

This package will include $2 billion in grants and $8 billion in zero-interest loans or equity investments.

“I want to help young people and first home buyers achieve the dream of home ownership,” Albanese said today.

“When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank.”

If re-elected, these changes would be put in place from January 1, 2026.

Minister for Housing Clare O’Neil said this plan will ensure young Australians are no longer “bearing the brunt of the housing crisis”.

“We want to help young Australians pay off their own mortgage, not someone else’s,” O’Neil said.