Home ownership could be a possibility for thousands more as the federal government promises to expand its first home buyers scheme. 

From July 1, up to 35,000 more people will be able to apply for a home loan with a five per cent deposit under an increased price cap.

Buyers will now be able to purchase properties priced at $700,000, up from $600,000 in a bid to combat soaring housing prices.

Housing Minister Michael Sukkar told Neil Breen the scheme will assist in the purchase of up to 50,000 properties each year.

“We think up to 40 per cent of all first home buyers will end up using this scheme,” he said.

“The biggest hurdle for getting into the market is getting that deposit together.

“Bringing that deposit hurdle down to five per cent, plus the savings of not having to pay lenders mortgage insurance is the reason why this has been such a popular scheme, hence why we’ve expanded it.”

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