Regional First Home Buyer Guarantee
in Queensland
What to know about the
Regional First Home Buyer
Guarantee scheme in
Queensland
First home buyers Gold Coast, listen up! Are you looking to buy a house in a regional area? The Australian Government has launched the Regional First Home Buyer Guarantee (RFHBG) scheme to help ease the path to homeownership for eligible customers.
With just a 5% deposit and one year of prior residency in an eligible region in Queensland, you could be well on your way to owning your dream home!
This generous scheme can be used to purchase or build an existing house, giving you more options and flexibility when it comes to finding the perfect house for you. Whether you’re building from scratch or purchasing an existing property that’s ready for you to move in, this scheme has something for everyone.
And with its generous benefits and eligibility requirements, the Regional First Home Buyer Guarantee is sure to make life easier for aspiring first time buyers looking to get their foot on the property ladder.
Get the Right Loan For Your Dream Home!
The Regional Home Guarantee Scheme is another one of the government’s many programs designed to help first time home buyers buy their first house sooner.
With this program, a portion of your home loan from a participating lender can be guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This means you can buy your dream home with just a 5% deposit and without having to pay for Lenders Mortgage Insurance.
And the best part? The Regional Home Guarantee Scheme can go up to 15% of your property’s value (as evaluated by the participating lender). But don’t get too excited, this guarantee is not a cash payment or a deposit for your home loan. Still, it’s a great help for firs time home buyers like you!
$700,000 price cap in regional centers in Queensland
$550,000 price cap in other regional areas in Queensland
What does the guarantee cover?
RFHBG allows for the purchase of:
- Existing house, townhouse, or apartment
- House and land package
- Land and separate contract to build a home
- Off-the-plan apartment or townhouse
Guarantee of home loan:
- Up to 15% of the property's assessed value (by lender)
- Can be claimed by Participating Lender if borrower defaults and property is sold
- Lesser amount can be claimed if deposit is more than 5% of the assessed value
Guarantee does not:
- Help make missed payments during the loan term
- Prevent default on home loan
- Stop lender from taking action for default under loan or mortgage
- Cover remaining amounts owed after sale proceeds applied and guarantee claimed
- Serve as a cash payment or a deposit for your home loan.
What is the required deposit?
- Between 5% to 20% of eligible property value
- Minimum deposit required is 5%
- Participating Lenders may require higher deposit based on individual circumstances
- Home buyers should speak with a Participating Lender to confirm deposit requirements
- Deposit must be made up of genuine savings
- Home buyers should confirm with Participating Lender if cash grants from other government schemes can be considered as part of genuine savings.
Who can participate?
- Regional first home buyers who have lived in a regional area or adjacent regional area for the preceding 12 months to the Home Loan Date
- Satisfy personal circumstances checks including income, prior property ownership, citizenship, age, marital status, deposit, and intention to live in the property
- Must have a home loan from a Participating Lender
- Must apply for an Eligible Loan
- Intend to purchase an Eligible Property
What is a regional area?
- Statistical Area Level 4 (ASGS SA4 2016) in a state or Northern Territory outside of the capital city
- Norfolk Island, Jervis Bay, Christmas Island, or Cocos (Keeling) Islands
- Defined by the ABS in July 2016
- Excludes greater capital city areas and the entire Australian Capital Territory
- Home buyers in these areas may be eligible for First Home Guarantee or Family Home Guarantee
- Use the Regional Checker to confirm eligibility by entering current and desired suburb/postcode
Contact a Participating Lender or a finance broker Gold Coast for more information on eligible regional areas.
Who are the participating lenders?
NHFIC has authorised a panel of 32 Participating Lenders to offer the HGS to home buyers.
Major bank lenders are Commonwealth Bank and National Australia Bank (NAB).
What is a regional area?
The Regional First Home Buyer Guarantee (RFHBG) started on October 1, 2022. You can only apply to a Participating Lender for your home loan to be covered by the RFHBG on or after that date
From October 1, 2022, the RFHBG can guarantee up to 10,000 home loans per financial year until June 30, 2025.
How to be eligible for the Regional First Home Guarantee scheme
To be eligible for the regional home guarantee scheme, you must pass its eligibility checks
- Must be an Australian citizen aged 18 or over (permanent residents not eligible)
- Must have lived in a regional area or adjacent regional area for the past 12 months
- Can apply as a single or joint applicant
- Total taxable income of $125,000 or less for singles or $200,000 or less for couples in the last financial year
- Cannot have owned a home previously
- Must have at least a 5% deposit to contribute towards the property purchase
- Property must be purchased in current or adjacent regional area
Some of the eligibility checks may differ for single applicants, joint applicants, or Australian Defence Force members. If you don’t meet any of these criteria, you may be eligible for the First Home Guarantee or the Family Home Guarantee.
Below are the requirements for the regional home guarantee scheme:
- Full name and date of birth
- Medicare number and position on the card
- Notice of Assessment for taxable income for 2021-22 income year
- Other information that the lender may require to assess eligibility for the RFHBG
- If you don't have a Medicare number or Notice of Assessment, your lender will advise on alternative information that needs to be provided.
Benefits of the Regional First Home Buyers scheme
No doubt the Regional First Home Buyer Guarantee (RFHBG) helps eligible first home buyers in obtaining home loans Gold Coast. It does so by providing a guarantee to Participating Lenders who made the loan to the home buyer.
This reduces the risk for the lender and increases the chances for the first home buyer to obtain a home loan, even with a smaller deposit.
Here are the key benefits:
Access to home loans with a lower deposit requirement
Increased borrowing capacity
The guarantee provided by the National Housing Finance and Investment Corporation (NHFIC) to Participating Lenders can increase the borrowing capacity of home buyers, making it easier for them to afford a home in a regional area.
Increased eligibility for home loans
The RFHBG has less stringent eligibility criteria compared to other home loan schemes, making it easier for first home buyers in regional areas to access home loans.
Support for home buyers in regional areas
Increased competition among Participating Lenders
The RFHBG can increase competition among Participating Lenders, potentially leading to better loan terms, lower interest rates, and more flexible loan options for first home buyers.
If you need further information on the mechanics of the RFHBG scheme, reach out to a first home buyer mortgage broker such as myself. I can assist you in not just understanding how the scheme works exactly — I can also show you various lending solutions to help fast track your journey to home ownership.
Benefits of the Regional First Home Buyers scheme
Eligibility Check
Verify if you meet the criteria for the Regional First Home Buyer Guarantee by using the NHFIC website.
Connect
Schedule an appointment with NAB either online, at a local branch, or with a broker and complete your home loan application.
Submit
Receive conditional approval from your lender. They will then gather the necessary documents for eligibility and secure your place in the scheme.
Purchase
Once approved, you will have a 90-day window to purchase your first home. Finally, complete the settlement process and move into your new home.
Buying first home? Here are some helpful resources
FAQs on the Regional First Home Buyer Guarantee
Yes. The Regional First Home Buyer Guarantee (RFHBG) does not limit your ability to access other government programs, such as the First Home Super Saver Scheme or First Home Owner Grant. However, these programs have their own eligibility criteria and conditions. Being eligible for the RFHBG does not guarantee eligibility for other programs. It is recommended that you research the terms of these programs and consult with your lender.
The scheme applies to designated regional areas across Australia. You can find out which areas are included by referring to your state’s website or speaking with your local council office.
Eligible homes can either be existing or new builds and must be located in a designated regional area in order to qualify for the scheme.
There is no set income limit for eligibility of the scheme. However, applicants should note that their income will be taken into consideration when assessing their application and lenders may require proof of sufficient income to service their loan repayments before approving them for a loan.
No, you cannot use this scheme to purchase an investment property. The scheme has been designed specifically for first home buyers and offers incentives such as low deposits and discounted interest rates in order to make it easier for them to get onto the property ladder.
Shop around for Gold Coast Home Loans with Professional Lending Solutions
At Professional Lending Solutions, we understand just how important it is for a first-time buyer to have access to this guarantee. That’s why we strive to ensure that our clients get the best possible outcome when using this scheme.
Our professional and friendly staff will be more than happy to answer any questions you might have about the Regional First Home Buyer Guarantee. Don’t hesitate to get in touch with me and my team today.
