Updated 10 May 2023
This article is based on publicly available information as at 10 May 2023
The Regional First Home Buyer Guarantee can help first home buyers buy their first home in designated regional areas with a deposit of as little as 5%.
During the 2022 federal election campaign the Labor Government initially proposed the "Regional First Home Buyer Support Scheme" in an effort to triple the number of people in regional areas who can access a government Home Guarantee Scheme.1
Renamed the Regional First Home Buyer Guarantee (RFHBG), this initiative officially launched on 1 October 2022 and is set to run until 30 June 2025.
What is the Regional First Home Buyer Guarantee and how does it work?
The Regional First Home Buyer Guarantee (RFHBG) allows first home buyers to purchase a home with as little as a 5% deposit and avoid paying lenders mortgage insurance (LMI). Under the RFHBG, up to 15% of a first home buyer’s home loan can be guaranteed by the Government.
LMI is usually payable to the lender if your deposit is less than 20% of the property’s purchase price. As the Government will place a guarantee on your loan for up to 15% of the purchase price, eligible participants of this scheme with a home loan from a participating lender will be able to avoid paying LMI.
There are 10,000 places available each financial year (up until 30 June 2025).2
Eligibility criteria for the Regional First Home Buyer Support Scheme
- Residency: You must live outside a capital city and have been living in the regional area or adjacent regional area you intend to purchase for at least 12 months prior to the date you sign your home loan agreement with your lender.
- Citizenship: Be an Australian citizen, at least 18 years of age. From July 1 2023, the scheme will also be available to eligible borrowers who are Australian Permanent Residents.4
- First home buyer: Have not previously and do not currently own a home
- Residential property: You must live in the property you purchase
- Income: Have a taxable income of up to $125,000 per year for singles and $200,000 per year for couples
- Property Price: The property purchased may not exceed the price caps shown in the table below in each region.
- For couples: Applicants prior to 1 July 2023 were restricted to those who were married or in a de-facto relationship, as well as single applicants. From 1 July 2023, any two eligible people may apply together, including friends, siblings or other family members.4
Property price caps for the Regional First Home Buyer Support Scheme
Property Price Cap
NSW – Illawarra, Lake Macquariet & Newcastle
NSW - Other regional areas
VIC – Geelong
VIC - Other regional areas
QLD – Gold & Sunshine Coast
QLD - Other regional areas