A lift in the price caps within the Federal Government’s Home Loan Deposit Scheme means home buyers will have a broader range of properties they can now buy.

The scheme helps first-home buyers purchase a property with a 5% deposit without needing to pay costly lenders’ mortgage insurance.

The cap will rise by $100,000 across capital cities and major regional centres, except in the ACT where it will increase by $250,000.

This will bring the cap to $900,000 in Sydney, $800,000 in Melbourne, $700,000 in Brisbane and $750,000 in the ACT. In Perth, Adelaide and Darwin it will be $600,000.

It’s expected the lifting of the caps will increase demand for apartments and entry-level houses.

Prime Minister Scott Morrison says increasing the caps means even more Australians will have the opportunity to buy their own home.

“Saving to buy a house has always been hard work and we know as prices have increased it’s been getting harder,” he says.