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Regional First Home Buyer Guarantee
October 9, 2022 |
Available from 1 October 2022, the new guarantee allows up to 10,000 regional homes each year to be purchased by first-home buyers with as little as a 5% deposit.
Here you’ll find what you need to know about the scheme, including the requirements needed for first-home buyers and what areas are classified as ‘regional’ to be eligible.
- What is the Regional First Home Buyer Guarantee scheme?
- What is classified as a regional property?
- Regional First Home Buyer Guarantee price caps
- Regional First Home Buyer Guarantee eligibility
What is the Regional First Home Buyer Guarantee scheme?
The Regional First Home Buyer Guarantee Scheme is an expansion of the Federal Government’s existing Home Guarantee Scheme designed to provide a boost for first home buyers in regional Australia.
From October 2022 to June 2025, 10,000 guarantees each year will help first-home buyers purchase a regional home with as little as a 5% deposit without having to pay Lender’s Mortgage Insurance (LMI). This means you can borrow up to 95% of the property’s value, with the federal government providing the lender with a guarantee of up to 15% of the property’s value.
The Regional First Home Buyer Guarantee is only available to Australians who have been living in the region they wish to buy in for at least one year.
The Home Guarantee Scheme now comprises:
- Regional First Home Buyer Guarantee – offering 10,000 guarantees each year
- First Home Buyer Guarantee – offering 35,000 guarantees each year
- Family Home Guarantee – offering 5,000 guarantees each year
What is classified as a regional property?
The Australian Government’s National Housing Finance and Investment Corporation (NHFIC) defines a regional area as areas in a state or the Northern Territory that are not the capital city of that state or territory.
The greater capital city areas of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the Regional First Home Buyer Guarantee. Home buyers in these areas may be eligible for the First Home Guarantee or Family Home Guarantee.
The NHFIC provides access to a Regional Checker, allowing home buyers to enter the suburb (or postcode) of their current home and the suburb (or postcode) they would like to purchase in, to confirm if they would be eligible for the scheme.
Under the Regional First Home Buyer Guarantee, home buyers can purchase a residential property, including:
- An existing house, townhouse or apartment
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse
Regional First Home Buyer Guarantee price caps
For first-home buyers looking to take advantage of the scheme, there are price caps on the property you can purchase. Ultimately the cap depends on which state or territory you live in and the regional area within the states. The table below shows just how much you can spend on a first home in specific regions to be eligible to receive the Regional First Home Buyer Guarantee.
| State | *Regional Centres | All other regional centres |
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $450,000 | |
| SA | $450,000 | |
| TAS | $450,000 |
* Regional centres are classified as Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.
| Territory | Regional area |
| ACT | Not applicable |
| NT Regional | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
Regional First Home Buyer Guarantee eligibility
To be eligible, home buyers or at least one borrower when applying as a couple must have lived in the regional area or adjacent regional area they intend to purchase in, for the preceding 12-month period to the date they execute their home loan agreement.
To qualify for this federal government scheme, you will need to:
- Live outside a capital city.
- Be an Australian citizen over 18.
- Be a first-time home buyer.
- Live in the house bought.
- Have an annual taxable income of under $125,001 for singles or $200,001 for couples.
- Have been living in the region for at least 12 months.
- Meet the property price threshold for the region.
It’s important to note, Australian Defence Force members may be eligible for a partial exemption to eligibility requirements.
Home buyers who are not eligible for the Regional First Home Buyer Guarantee may be eligible for the First Home Guarantee or the Family Home Guarantee. Before taking up any of these schemes, home buyers should discuss their individual circumstances with a participating lender.
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