A Federal Government scheme to allow first home buyers to purchase a property with a deposit as little as 5 per cent will operate on a "first-in, best-dressed" basis.

Key points: The Federal Government will offer loan guarantees for eligible buyers on low and middle incomes

The Federal Government will offer loan guarantees for eligible buyers on low and middle incomes The scheme is aimed at helping up to 10,000 first home buyers enter the market each year

The scheme is aimed at helping up to 10,000 first home buyers enter the market each year The Government announced the scheme ahead of the Federal Election in May

Scheme's property price caps: State/territory Capital city and regional centres Rest of state NSW $700,000 $450,000 VIC $600,000 $375,000 QLD $475,000 $400,000 WA $400,000 $300,000 SA $400,000 $250,000 TAS $400,000 $300,000 ACT $500,000 - NT $375,000 -

The Government has today unveiled details of the scheme aimed at helping up to 10,000 first home buyers on low and middle incomes enter the market each year from January 2020.

Under the scheme announced ahead of the May election, the Government will offer loan guarantees for Sydney properties worth up to $700,000, and $450,000 across the rest of New South Wales.

In Melbourne, eligible buyers will be able to access the scheme when purchasing a home worth up to $600,000, and $375,000 across other parts of the state.

Price thresholds for capital cities will also apply to large regional centres with populations over 250,000, including the Gold Coast, Newcastle, Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong.

Speaking on Sky News, Finance Minister Mathias Cormann said price caps for eligible properties will take into account the median house price in capital cities and regional centres.

"The price caps are calibrated to take into account median house prices and conditions in respective markets and indeed they are set with reference to the threshold for concessional arrangements for stamp duty in various states," Senator Cormann said.

"There is no specific number of guarantees per jurisdiction it will be on a … first-in, best-dressed basis.

"Ultimately the scheme will be driven by demand, up to 10,000 guarantees a year."

The program will be open to singles with a taxable income up to $125,000 per year and couples earning less than $200,000 per year, and will apply to owner-occupied loans on a principal and interest basis.

"It's really focused on helping first home buyers buy a modest first home," Senator Cormann said.

According to analysis by CoreLogic, the median Sydney property value in September was $805,000 and $635,000 in Melbourne.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 47 seconds 1 m 47 s Scott Morrison announces the first home buyers election pledge

Housing Minister Michael Sukkar said only two of the big four banks will be chosen to take part in the scheme, with 50 per cent of all guarantees set aside for smaller lenders.

"A lot of the smaller banks and regional financial institutions I think, by their very nature, will ensure there is good coverage across the country," he said.

Opposition Leader Anthony Albanese said time was running out for the Government to release crucial details.

"We still don't know which lenders will be involved and what the interest rates will be, and this is a scheme that is supposed to begin in two months," Mr Albanese said.

"The Government really needs to get on top of the detail so that people can benefit from it."

Labor quickly promised to match the scheme when it was first unveiled by Prime Minister Scott Morrison during the election campaign.

Legislation passed parliament earlier this month with the Opposition's support and an amendment for a review in 12 months.