Regional First Home Guarantee Scheme

What is the scheme?

The Regional First Home Guarantee Scheme is a government initiative designed to help first home buyers purchase property in regional areas with just a 5% deposit. This program eliminates the need for lender's mortgage insurance, making home ownership more accessible in regional communities while supporting economic growth outside major capital cities.

Eligibility requirements

To qualify for this scheme, you must meet specific criteria related to your personal circumstances, income levels, and property location. The scheme is designed to support genuine first home buyers who plan to live in regional areas.

• Australian citizen or permanent resident
• First home buyer (haven't owned property in Australia previously)
• Individual income under $125,000 or couples under $200,000
• Property must be located in eligible regional area
• Property value under regional price caps (varies by location)
• Must occupy property as your primary residence

How the guarantee works

The government guarantees up to 15% of your loan value, which covers the gap between your 5% deposit and the traditional 20% required to avoid lender's mortgage insurance. This guarantee gives lenders confidence to approve your loan without requiring additional insurance costs.

• Government guarantees up to 15% of loan value
• You provide minimum 5% deposit from your own savings
• No lender's mortgage insurance required (significant cost saving)
• Available through participating lenders nationwide
• Standard loan application and approval process applies

Eligible properties and locations

The scheme covers a wide range of property types in designated regional areas, from small country towns to larger regional cities. Properties must be suitable for residential occupation and meet standard lending criteria.

• Houses, units, townhouses, and apartments accepted
• Both new and established properties eligible
• Must be located in designated regional areas
• Property used as primary residence only
• Property value limits vary by specific regional location

Application process

Applying for the Regional First Home Guarantee follows a straightforward process through participating lenders. It's important to confirm your eligibility and property location before beginning your property search.

1. Check eligibility criteria and confirm property location qualifies
2. Obtain pre-approval from participating lender
3. Begin property search within eligible areas and price limits
4. Apply for guarantee through your chosen lender during loan application
5. Complete standard loan approval process with government guarantee

Benefits and considerations

This scheme offers significant advantages for eligible buyers, particularly the substantial savings on lender's mortgage insurance and the ability to enter the property market with a smaller deposit.

• Lower deposit requirement enables faster market entry
• No LMI costs can save $10,000-$20,000+
• Access to growing regional property markets
• Government backing provides lender confidence
• Support for regional economic development