The Regional First Home Buyer Guarantee (RFHBG) is now available to help first-home buyers living in regional Australia achieve their dreams of home ownership.
The RFHBG is similar to the two other Guarantees: the First Home Guarantee and the Family Home Guarantee, allowing first-home buyers to purchase a modest first home with just a 5% deposit.
There will be 10,000 RFHBG places made available per financial year until 2025.
To take advantage of the scheme, locals will need to:
- Live outside a capital city
- Be a first home buyer who is an Australian citizen or permanent resident (beginning 01 July 2023) and over 18
- Live in the house purchased
- Have a taxable income of up to $125,000 per year for singles and $200,000 a year for couples
- Have been living in the region for at least 12 months
- Meet the property price thresholds for the region under the existing Home Guarantee Scheme
Changes in criteria for Regional First Home Buyer Guarantee
Starting from 1 July 2023, the eligibility criteria for the Regional First Home Buyer Guarantee will be expanded. Previously, only first-home buyers were eligible to apply. However, with the expanded criteria, friends, siblings, and other family members will also be able to participate in joint applications. In addition, former property owners who haven’t owned a property in Australia within the last 10 years will be eligible for this guarantee.
What can you buy?
- Existing homes, townhouses and units
- Off-the-plan apartments
- Land with a contract to build
What do banks require?
- Copy of the utility notices for the preceding 12-month period
- Copy of the rental agreement for the preceding 12-month period
- Copy of a recent NOA where this can validate residence over the preceding 12-month period
More tools to help
The Region Checker Tool will be accessible from 1 October 2022 on NHFIC’s website. In this tool, you will be able to enter the customer’s existing postcode and the postcode of the property they wish to purchase to determine if they can proceed with applying for an RFHBG-backed loan. Other guarantees may be available if your customer doesn’t meet the RFHBG requirements.
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
Your full financial situation will need to be reviewed prior to acceptance of any offer or product.