From 1 October 2022 to June 2025, 10,000 places will be available each year under the Regional First Home Buyer Guarantee. The scheme was scheduled to come into effect on 1 January 2023, but the government has shifted the date earlier.
This is huge news for Australians residing in regional areas.
What Is The Regional First Home Buyer Guarantee?
The Regional First Home Buyer Guarantee (RFHBG) is an expansion of the Home Guarantee Scheme. With a deposit as small as 5% of the property value, you could buy or build a property in a regional area without paying Lenders Mortgage Insurance (LMI).
LMI is usually applicable when you’re borrowing more than 80% of the property value. But under this scheme, you can borrow up to 95% of the property value and the government will guarantee 15% of the value of your loan.
Am I Eligible?
- You must be an Australian citizen and at least 18 years old
- You must have not owned a home before
- You must buy outside of a capital city area
- You must have been living in the region where the property is located, or the adjacent area, for 12 months
- Your annual income must not exceed $125,000 for individuals or $200,00 for couples
- The price of the property must not exceed the caps
- You must buy the property as a principal place of residence and not an investment.
What Is A Regional Area?
A regional area is defined as:
- the Statistical Area Level 4 (ASGS SA4 2016) areas in a State or the Northern Territory that are not a capital city of that State or Territory; and
- Norfolk Island; or the Territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands; as defined in the version published by The Australian Bureau of Statistics (ABS) in July 2016.
The greater capital city areas of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the RFHBG. Home buyers in these areas may be eligible for the First Home Guarantee or Family Home Guarantee.
Access the Regional Checker – allows home buyers to enter the suburb (or postcode) of their current home and the suburb (or postcode) they would like to purchase in, so they can confirm if they would be eligible for the RFHBG.
Contact a Participating Lender for more information, including which regional areas you may be able to purchase in.
What Are The Price Caps?
| Region | Price Caps |
|---|---|
| NSW – rest of state | $750,000 |
| VIC – rest of state | $650,000 |
| QLD – rest of state | $550,000 |
| WA – rest of state | $450,000 |
| SA – rest of state | $450,000 |
| TAS – rest of state | $450,000 |
| ACT | $750,000 |
| Northern Territory | $600,000 |
| Jervis Bay Territory & NorfolkIsland | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
How To Apply For The Regional First Home Buyer Guarantee
You can either apply with a participating lender or reach out to a mortgage broker.
The participating lenders include major banks, non-banks and credit unions.