PHOTO: Treasurer John Frydenberg and Housing Minister Michael Sukkar released the government’s draft Investment Mandate for the First Home Loan Deposit Scheme.

First-home buyers wanting to buy next year using the federal government’s new home loan deposit scheme will be limited to properties sold for less than $700,000 in Sydney and $600,000 in Melbourne.

First home buyers in Queensland will be able to purchase properties in Brisbane up to $475,000 in value.

The scheme to be known as the First Home Loan Deposit Scheme will apply to owner-occupied loans on a principal and interest basis.

Property price caps under the scheme set appropriate price thresholds in capital cities, large regional centres with a population over 250,000 and regional areas.

The capital city 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, Illawarra (Wollongong) and Geelong.