This surge in borrowing is attributed to the scheme's raised price caps and the removal of income restrictions, enabling more buyers to enter the market with lower deposits. While this facilitates quicker access to home ownership, it also raises concerns about financial stability. The Australian Prudential Regulation Authority (APRA) has responded by limiting high debt-to-income lending, capping such loans at 20% of new mortgages to mitigate potential risks.

For first-home buyers, it's essential to balance the opportunity to enter the market sooner with the responsibility of managing higher debt levels. Prospective buyers should conduct thorough financial assessments, considering factors like interest rate fluctuations and personal income stability. Seeking advice from financial professionals can aid in making informed decisions that align with long-term financial health.

In conclusion, while the expanded First Home Guarantee Scheme offers valuable support to first-home buyers, it's crucial to approach increased borrowing with caution. Understanding the implications of higher debt and implementing sound financial planning are key to sustainable home ownership.