After being announced in the first half of 2022, the Regional First Home Buyer Support Scheme commenced on 1 October 2022 and spots will be available as soon as January 2023.
What is the regional first home buyer support scheme?
The Regional First Home Buyer Support Scheme is a government-backed initiative to provide a guarantee to eligible first-home buyers who wish to purchase their first home in regional Australia.
Acting similarly to other government guarantee schemes (like the First Home Guarantee and Family Home Guarantee), the Regional First Home Buyer Support Scheme will allow first home buyers to purchase their home in regional Australia with a deposit as low as 5% and the waiving of lenders mortgage insurance (LMI). The government will guarantee up to 15% of the total loan, therefore providing the lender with the 20% surety usually required to be approved for a home loan.
There are 10,000 places available under the Scheme each year from January 2023 until 2025.
Who is eligible for support under the regional first home buyer support scheme?
To be eligible for a spot in the Regional First Home Buyer Support Scheme, applicants must:
- be an Australian citizen of at least 18 years of age;
- be applying as an individual or one-half of a couple (either married or de facto);
- have a taxable income of up to $125,000 per year for singles and $200,000 per year for couples;
- have been living in the region in which they intend to purchase for at least 12 months before the date of the home loan agreement;
- have not previously owned a property and do not currently own property; and
- plan on living in the property they purchase under the scheme.
In cases where the application is joint, at least one of the borrowers must have lived in the regional area in which the pair intends to purchase for at least 12 months preceding the date of the home loan agreement. Evidence may be requested, including:
- a copy of utility notices from within the previous 12-month period;
- a copy of a rental agreement from within the previous 12-month period; and/or
- other documentation proving the applicants’ residence in the regional area for the previous 12-month period.
Borrowers who are members of the Australian Defense Force may be able to provide an official statement that confirms any posting in the preceding 12 months which caused the applicant/s to reside outside the regional area as required in the course of the applicant performing their duties.
What types of properties can be purchased under the Regional First Home Buyer Support Scheme?
Approved applicants can purchase either:
- an existing property, such as a house, townhouse, or apartment;
- a house and land package;
- land with a separate contract to build a house; or
- an off-the-plan apartment or townhouse.
Property price caps for the Regional First Home Buyer Support Scheme
As with other government assistance for first home buyers, caps apply and are scaled to suit the local market. In Cairns and other parts of Far North Queensland, properties of up to $450,000 will be eligible under the Scheme.
The National Housing Finance and Investment Corporation website provide further detail on property caps and a Regional Checker tool that assists in validating the eligibility of a potential property under the Scheme.
| Regions | Property Price Cap | Maximum LMI Saving |
| NSW – Illawarra, Central Coast & Newcastle | $800,000 | $31,939 |
| NSW – Other | $600,000 | $23,954 |
| VIC – Geelong | $700,000 | $27,954 |
| VIC – Other | $500,000 | $14,871 |
| QLD – Gold & Sunshine Coast | $600,000 | $23,954 |
| QLD – Other | $450,000 | $13,384 |
| WA | $400,000 | $11,897 |
| TAS | $400,000 | $11,897 |
| SA | $350,000 | $10,410 |
| NT | $500,000 | $14,871 |
Applications for the Regional First Home Buyer Support Scheme are now open. To apply, please contact Eakins Finance & Insurance for assistance submitting your application.
