The Australian Labor government removed income caps for the first home guarantee program last year. Between October and April, nearly 14,000 borrowers with incomes exceeding the previous limits received government-backed 5% deposits. The program allows first-time buyers to borrow 95% of a property's value, with the government covering lenders' mortgage insurance.

Data from Housing Australia shows the scheme backed 15,924 single borrower loans and 23,790 joint loans from October 1 to April 30. Of these, 6,812 were for single borrowers with incomes over $125,000, and 7,167 were for joint borrowers earning over $200,000. Nearly 1,000 single Australians earning $200,000 or more received a deposit, as did 1,251 couples with a combined income of $275,000 or more.

The government also raised price caps for the program. Homes in NSW cities were included if priced below $1.5 million, while those in south-east Queensland were included if below $1 million. Caps were raised to $950,000 for Melbourne and Geelong, $850,000 for Perth, $900,000 for Adelaide, and $700,000 for Hobart.

Cotality data shows homes under the newly adjusted price cap levels experienced slower price increases than homes above those levels in early 2025. However, these homes showed a faster rise in prices once the scheme was expanded. From October to April, the government backed an average of 5,670 5% deposit loans each month.

Australian Bureau of Statistics data shows first-home buyers across Australia took out an average of 10,181 loans monthly from October to March. This marks a 3% increase compared to the average of 9,900 loans each month in the six months prior to October.

Amy Auster, chief executive of Policy Institute Australia, said in a podcast interview: "It always matters because ... government support traditionally goes to the people who need it the most." She added: "There's been an ongoing expansion of efforts to financially support ... first home buyers, and I understand why, but in the end, it hasn't solved the problem." Independent economist Saul Eslake stated: "The way it was expanded by Albanese goes to the heart of why we have the housing problems that we have." He said: "Whenever governments do things that allow people to spend more on housing than they would have otherwise, they end up spending more on housing."