However, Wallace warns that the process is more complex than it appears, with many additional costs to account for.

We asked him to run the numbers on what a single person earning the median Australian income could borrow. Hint: it isn’t much.

What’s changed for first home buyers?

Under the Home Guarantee Scheme, now called the 5% Deposit Scheme, limitations on income and the number of available spots have been removed.

The price limits for properties have also increased to align with rising property values, including homes from $500,000 in rural South Australia to $1.5 million in Sydney.

New property price caps are in place, to keep up with the growth of the property market. Source: SBS / Caroline Huang

While a 5 per cent deposit might sound comparatively small ($75,000 on a $1.5 million property), your ability to afford a home is affected by a slew of other costs and your borrowing power.

“It will actually make it tougher, not easier, for first-time buyers who are eager to secure a home and maintain manageable mortgage debt,” Pocock commented earlier this month.

Single with an average income? You might be out of luck

Damian Wallace, a mortgage broker, points out that the 5% Deposit Scheme is misleading, as there are numerous other costs that can accumulate rapidly. Source: SBS

“That … wage is even difficult to buy a unit which is somewhere on the outskirts of Sydney,” he said.

“When you put the same salaries together, your borrowing capacity more than doubles, because your living expenses … aren’t doubling,” Wallace said.

Other factors, such as your credit history, savings, assets, debts and expenses, also affect how much you can borrow.

The true cost of buying a home

“So it’s almost $150,000.”

Couples have a far greater borrowing capacity than single applicants. Source: Getty / skynesher

Some banks will also charge higher interest rates on a loan with a 5 per cent deposit.

“Now some people say, well, that’s money well spent, because if I waited to save that 20 per cent deposit, the property market goes up.”

High-income couples are the winners

“So these are effectively new couples typically who come together who haven’t got the savings, but have got a really strong income.”

“Let’s cut to the chase — to own a home in Sydney is difficult.”