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Regional First Home Buyer Guarantee - what you need to know
22 Aug 2023
The Regional First Home Buyer Guarantee (RHFBG) is a scheme that aims to help Australians living in rural areas purchase a home with a deposit of as little as 5% – here’s what you need to know.
Rural Australians hoping to enter the housing market sooner could now get a boost via the federal government’s Regional First Home Buyer Guarantee. The first round of the program, a part of the government’s Home Guarantee Scheme (HGS), rolled out on 1 October 2022, and offers 10,000 places to eligible prospective homebuyers in areas outside major cities.
What does the Regional First Home Buyer Guarantee scheme offer homebuyers?
The Regional First Home Buyer Guarantee offers eligible homebuyers in rural and regional areas the opportunity to purchase a home with a deposit as low as 5%. Usually homebuyers with a deposit of less than 20% face additional hurdles to getting into the property market, including in many cases needing to pay for expensive lenders mortgage insurance (LMI). The program offers 10,000 guarantees each financial year, until 30 June 2025.
Who is eligible for the Regional First Home Buyer Guarantee?
Per the National Housing Finance and Investment Corporation (NHFIC) website, in order to apply for the program, you must be:
- applying as an individual or joint applicants (can include married or de facto couples, friends, siblings or other family members)
- an Australian citizen(s) or permanent resident(s) at the time they enter the loan
- at least 18 years of age
- individually earning up to $125,000 of taxable income or jointly earning up to $200,000 of taxable income
- intending to be owner-occupiers in the property (exceptions may be available for Australian Defence Force members)
- home-buyers who have not owned nor part owned (including holding interest in) a property in the past 10 years anywhere in Australia
Home buyers (or at least one borrower when applying with another applicant) must have lived in the regional area, or an area adjacent to the purchase, for at least a year before executing a home loan agreement.
The NHFIC website has more information on property price caps in each state and territory.
What other support is available for home-buyers?
Home-buyers who are not eligible for the Regional First Home Buyer Guarantee may still be eligible for other support schemes, including:
- First Home Guarantee (FHBG): Formerly known as the First Home Loan Deposit Scheme (FHLDS), this program allows eligible homebuyers to purchase a home with a deposit of as little as 5% and avoid lenders mortgage insurance (LMI).
- Family Home Guarantee: This program allows eligible single parents to purchase a home with a deposit of as little as 2% and avoid LMI.
- First Home Super Saver (FHSS) Scheme: This program allows you to make voluntary contributions into your super to put towards a home deposit.
- First Home Owners Grants and concessions: These offerings differ between states and territories, supporting first home buyers in a variety of ways from grants to stamp duty savings.
Compare Home Loans (First home buyer with a variable rate) with Canstar
If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest-highest). Products shown are principal and interest home loans available for a loan amount of $500,000 in NSW with an LVR of 80% of the property value and that offer an offset account. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
Owner occupied
5% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Cover image source: Shuang Li/Shutterstock.com
Additional updates by Karen Yang
This article was reviewed by our Content Lead Ellie McLachlan and Content Producer Karen Yang before it was updated, as part of our fact-checking process.
Owner occupied
20% min deposit
Redraw facility
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