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More than 100 first home buyer suburbs could slip out of reach by the summer if property values continue to rise at the current rate, new modelling shows.

Rising values could begin to eat into the benefit of an expanded government scheme to help home buyers that begins in October.

Property price caps will rise for first home buyers using a government scheme. Credit: Joe Armao

From next month, first home buyers can purchase a property on a low 5 per cent deposit using the First Home Guarantee Scheme, and avoid lenders’ mortgage insurance, up to a property price cap of $1.5 million in Sydney, $950,000 in Melbourne, $1 million in Brisbane or $850,000 in Perth.

This compares to more modest limits available to buyers under the scheme now, of $900,000 in

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