The Regional First Home Buyer Guarantee (RFHBG) is an Australian Government initiative that aims to support eligible regional first home buyers to purchase a home sooner.
The RFHBG can be used to purchase a modest home with a deposit of as little as 5 per cent. This is because Housing Australia guarantees to a Participating Lender like Australian Mutual Bank up to 15 percent of the value of the property purchased that is financed by an eligible regional first home buyer’s home loan. The Guarantee is not a cash payment or a deposit for a home loan.
Eligible regional first home buyers can use the RFHBG in conjunction with other government programs like the First Home Super Saver Scheme or state and territory first home owner grants and stamp duty concessions.
By taking advantage of the Regional First Home Buyer Guarantee:
- You only need as little as 5% deposit
- You are able to purchase in the regional area you have lived in during the preceding 12 month period, or an adjacent regional area*
Am I eligible?
The following eligibility criteria apply:
- Individuals or joint applicants (joint applicants may include partners, friends, siblings, and other family members)
- Australian citizens or permanent residents who are at least 18 years of age.
- Individual applicants with a taxable income of up to $125,000 per annum, and joint applicants with a taxable income of $200,000 per annum, as shown on the Notice of Assessment issued by the Australian Taxation Office.
- Applicants (or at least one applicant if applying as joint applicants) who have lived in the regional area or adjacent regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement. **
- Applicants with home loan repayments of both principal and interest for the full period of the loan agreement. The loan agreement must have a term of no more than 30 years.
- Applicants who intend to be owner-occupiers of the purchased property.
- Applicants who have at least 5 per cent of the value of an eligible property saved as a deposit.
- Applicants who have not previously owned, or had interest in, a property (including owning or having owned land) in Australia in the last 10 years.
What type of property can be bought?
- 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
Search the property price threshold for a suburb or postcode using the Property Price Cap Tool at housingaustralia.gov.au. You can find more information about the RFHBG and eligibility criteria on the Housing Australia website.
The application process
Loan applications can be submitted online and Guarantee places are strictly limited.
Once received we will assess your loan for suitability and whilst doing so temporarily reserve a Guarantee place for you for a period of 10 days.
Once we have verified that you meet our lending requirements and the requirements set out by the Guarantee, your loan will be approved and we will go about securing you a Guarantee place for a further 90 days.
