Regional First Home Buyer Guarantee: Buying Outside the City
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
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🔑 Key Facts
- The Regional First Home Buyer Guarantee (RFHBG) helps eligible buyers in regional areas purchase with just a 5% deposit.
- The government guarantees up to 15% of the loan, so you can avoid Lenders Mortgage Insurance (LMI).
- You must live in the regional area (or be moving back) and meet income and property limits.
- Places are capped annually — early application is key.
- Flint supports buyers with eligibility checks, lender comparison, and pre-approval.
What Is the Regional First Home Buyer Guarantee?
The RFHBG is part of the Australian Government’s Home Guarantee Scheme (HGS). It’s designed to support first home buyers living in or moving to regional areas, helping them get into the property market sooner.The FHOG is a government initiative introduced to offset the cost of purchasing or building a new residential property. It supports first-time buyers looking to enter the property market, particularly for newly built homes, off-the-plan purchases, or substantial renovations.
With as little as a 5% deposit, eligible buyers avoid the cost of LMI — thanks to a government-backed guarantee of up to 15% of the loan value.
Who Can Apply?
To qualify, you must:
- Be an Australian citizen aged 18 or over
- Have not previously owned a property in Australia
- Live in a regional area or have lived there for at least 12 months in the past
- Have a taxable income below $125,000 (single) or $200,000 (couple)
- Intend to live in the property as your principal place of residence
Property Price Caps
The RFHBG has different thresholds depending on your location. Examples include:
- NSW Regional: $750,000
- VIC Regional: $650,000
- QLD Regional: $600,000
- WA/SA/TAS/NT: typically $500,000–$600,000
Benefits of the RFHBG
- Buy with just a 5% deposit — no need to wait years to save 20%
- Avoid paying LMI — saving thousands on upfront costs
- Designed for regional locals and returners — supports decentralisation
- Available across participating lenders — more choice, competitive rates
Things to Watch Out For
- Annual cap of 10,000 places — applications can fill quickly
- Must remain in the property — this is for owner-occupiers, not investors
- Loan approval is still required — credit checks, income verification, and valuations apply
- Available across participating lenders — more choice, competitive rates
📞 Looking to Buy in a Regional Area with a Low Deposit?
At Flint, we help regional buyers:
- Check eligibility and confirm postcode inclusion
- Compare participating lenders and structure your loan
- Apply with confidence and avoid LMI with a 5% deposit
Talk to Flint today and secure your slice of regional Australia — with expert guidance every step of the way.
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