Buying a House for the First Time in Australia: A Guide to the Government’s First Home Buyer Home Guarantee Scheme

What is the First Home Guarantee Scheme?

The First Home Guarantee (FHG) is a government initiative designed to help eligible buyers who are buying a house for the first time enter the property market sooner, without the financial burden of a 20% deposit. Under this scheme, the Australian Government—through Housing Australia—acts as a guarantor for up to 15% of a home loan, allowing buyers to secure a mortgage with as little as 5% deposit while avoiding Lenders Mortgage Insurance (LMI). This can benefit buyers by not having to save tens of thousands of dollars in upfront costs.

Originally introduced as the First Home Loan Deposit Scheme (FHLDS), the program has evolved to offer more flexibility and accessibility. Each financial year, 35,000 places are available for first-home buyers who meet the income and property price thresholds. Unlike some grants or concessions, the FHG isn’t a cash handout—it’s a government-backed support system that makes home ownership more achievable for Australians struggling to save a large deposit.

Tip: Even though a 5% deposit is enough to qualify, borrowing 95% of a property’s value means higher repayments. Make sure your budget can comfortably handle these costs before committing!

How Does the First Home Guarantee Work?

The First Home Guarantee (FHG) allows eligible first-home buyers to purchase a property with as little as 5% deposit, without the need to pay Lenders Mortgage Insurance (LMI). Typically, lenders require a 20% deposit to avoid LMI, but under this scheme, the government guarantees up to 15% of the loan, reducing the lender’s risk and making it easier for buyers to secure a mortgage.

Here’s how the FHG works step by step:

1. Check Eligibility – Applicants must be Australian citizens or permanent residents and earn $125,000 or less (for singles) or $200,000 or less (for couples) per year. The scheme is only available for owner-occupied homes, so investment properties do not qualify.
2. Find a Participating Lender – Not all banks and lenders offer FHG-backed loans. Housing Australia works with selected banks and credit unions, so applications must go through an approved lender.
3. Choose an Eligible Property – The scheme applies to both new and existing homes, but property price caps apply. These caps vary by state and region to ensure the scheme supports affordable housing.
4. Secure a Home Loan – Once a lender confirms eligibility and the buyer selects a property, the loan application proceeds as usual. The key benefit is that buyers don’t need a full 20% deposit, making homeownership more accessible.
5. Purchase the Home – If the application is approved, the home purchase proceeds. The government guarantee is applied automatically, meaning buyers do not receive cash directly, but they benefit by avoiding LMI fees and securing a home sooner.

Tip: While the FHG reduces upfront costs, buyers still need to budget for stamp duty, conveyancing fees, and other expenses. Checking eligibility for stamp duty concessions in your state can help maximise savings.

What Type of Property Can Be Bought?

The First Home Guarantee (FHG) covers a range of property types, giving buyers flexibility while ensuring the scheme supports affordable housing. However, there are strict property price caps that vary by state and region, meaning buyers need to choose homes that fall within these limits.

Eligible properties under the scheme include:

1. New or existing residential homes – Buyers can purchase brand-new properties or established homes, as long as they meet the price cap for their area.
2. Townhouses and apartments – Multi-unit dwellings such as townhouses, villas, and apartments are eligible, making the scheme suitable for buyers looking for affordable housing options in urban areas.
3. House and land packages – Buyers can purchase a house and land package as long as the total cost stays within the price cap.
4. Land with a contract to build – If purchasing vacant land, the buyer must sign a fixed-price contract to build a home to qualify for the guarantee. The combined cost of the land and construction must be within the price limit for the region.
5. Off-the-plan properties – Buyers can secure an off-the-plan home if it meets the eligibility criteria and price threshold. This option can be beneficial for those who want a newly built property with modern features.

Properties that do not qualify under the FHG include investment properties, holiday homes, and vacant land without a building contract. Since the scheme is designed to help people buy a home to live in, the property must be used as the buyer’s primary residence.

Tip: Before committing to a property, check the current price cap for your state or region. Property markets fluctuate, and staying informed can help ensure eligibility under the scheme.

What Property Price Thresholds Apply?

The First Home Guarantee (FHG) has specific property price thresholds that vary depending on the state or territory, as well as the type of property being purchased. These caps are in place to ensure the scheme supports affordable home ownership and is accessible to first-time buyers in different areas.

The price caps are determined by the location of the property and differ for new homes and existing homes. For example, homes in metropolitan areas often have higher price caps, while regional areas have lower caps to reflect local property market conditions.

Here’s a general breakdown of the current property price thresholds by state and territory:

• New South Wales (NSW):
  • Metropolitan Areas: $900,000
  • Regional Areas: $600,000
• Victoria (VIC):
  • Metropolitan Areas: $800,000
  • Regional Areas: $600,000
• Queensland (QLD):
  • Metropolitan Areas: $750,000
  • Regional Areas: $500,000
• Western Australia (WA):
  • Metropolitan Areas: $600,000
  • Regional Areas: $400,000
• South Australia (SA):
  • Metropolitan Areas: $575,000
  • Regional Areas: $400,000
• Tasmania (TAS):
  • Metropolitan Areas: $500,000
  • Regional Areas: $400,000
• Australian Capital Territory (ACT):
  • Statewide: $500,000
• Northern Territory (NT):
  • Statewide: $500,000

These caps are for existing homes. For new homes, the price thresholds can vary slightly in certain regions, but they generally follow similar patterns to existing property caps.

Tip: Property prices can fluctuate, so it’s essential to regularly check the most up-to-date price thresholds on the official government website or speak with your lender. If the price of your desired home exceeds the cap, you’ll need to explore other financing options or properties within your budget.

Who is Eligible?

To qualify for the First Home Guarantee (FHG), there are several key eligibility criteria that must be met. These criteria are designed to ensure the scheme is targeted at first-time home buyers who need support to enter the property market. Here’s an overview of the main requirements:

1. First-Time Home Buyers – The scheme is specifically for first-home buyers, meaning you must not have previously owned a home or had an interest in residential property in Australia.
2. Citizenship or Residency – Applicants must be Australian citizens or permanent residents. If you’re a permanent resident, you must have lived in Australia for a specified period before applying.
3. Age Requirements – You must be at least 18 years old to qualify for the FHG. There is no maximum age limit, but it’s important to note that the scheme is aimed at those looking to purchase their first home and live in it long-term.
4. Income Limits – There are income caps for both singles and couples. For singles, the income limit is $125,000 per year. For couples, the combined income must be $200,000 or less per year. These caps ensure that the scheme supports individuals or couples with moderate incomes looking to buy their first home.
5. Property Type and Price Caps – As mentioned earlier, the property must be owner-occupied (not an investment or holiday home) and must fall within the price thresholds set for the relevant state or region. These caps vary based on location, with different price limits for metropolitan and regional areas.
6. Deposit Requirement – The FHG allows you to purchase with as little as 5% deposit. While the government guarantees up to 15% of the loan, you must still meet the lender’s criteria for the remaining 85-95%. This means you’ll need to demonstrate that you can afford the loan repayments and meet other financial requirements set by the lender.
7. Lender Participation – Not all lenders offer FHG-backed loans, so you must apply through a participating lender. The lender will assess your application and ensure you meet all eligibility requirements.
8. Intended Use of the Property – The property must be intended for owner-occupation. You cannot purchase a property with the intention of renting it out or using it as an investment.

Tip: If you’re unsure about your eligibility, it’s a good idea to speak with a participating lender or consult the official government website to clarify the criteria before starting the home-buying process.

How to Apply

Applying for the First Home Guarantee (FHG) involves a few key steps to ensure you meet all eligibility requirements and successfully secure the government-backed guarantee. Here’s a step-by-step guide on how to apply for the scheme:

1. Check Your Eligibility – Before starting the application process, it’s essential to confirm that you meet all the eligibility criteria, including income limits, citizenship or residency status, and the property price caps. If you’re unsure, you can check the official First Home Guarantee website or speak with a participating lender.
2. Choose a Participating Lender – The First Home Guarantee is available through a select group of approved lenders, such as banks, credit unions, and building societies. It’s important to apply through a lender that is part of the FHG program. You can find a list of participating lenders on the official website or by contacting your bank.
3. Complete the Loan Application – Once you’ve selected your lender, you’ll need to fill out the usual home loan application forms, providing necessary information such as proof of income, identification, and any other required financial documents. Your lender will assess your ability to repay the loan and determine if you meet the necessary financial criteria. A mortgage broker can help support & guide you through this process.
4. Provide Evidence of First-Home Buyer Status – You will need to prove that you are indeed a first-time home buyer. This typically involves submitting documentation showing that you have never owned a home or had an interest in residential property in Australia. The lender may also ask for other documents, such as tax returns, to verify your eligibility.
5. Confirm Property Eligibility – If you have already selected a property, ensure it falls within the price cap for your region and is an eligible property type (such as new or existing homes, townhouses, apartments, etc.). Your lender will verify that the property meets all the requirements.
6. Government Guarantee Approval – If your application is successful, the lender will apply for the government guarantee on your behalf. The guarantee means that the government will cover up to 15% of the loan, reducing your need for Lenders Mortgage Insurance (LMI). You won’t receive cash directly, but this guarantee will allow you to proceed with purchasing the home with as little as a 5% deposit.
7. Proceed with the Home Loan and Purchase – Once the guarantee is approved, you’ll receive the loan under the same terms as any regular home loan. You’ll then move forward with purchasing your first home, making sure to meet all the contractual and legal obligations involved in the process.
8. Sign the Loan Agreement – After your application is approved and your property is confirmed, you’ll sign the loan agreement and finalise your home purchase. The lender will proceed with disbursing the funds, and you can officially become a homeowner!

Tip: Keep in mind that the application process can take time, so be sure to start early, especially if you are applying close to property settlement dates. Planning ahead can also help avoid any unexpected delays.

What is the Regional First Home Buyer Guarantee?

The Regional First Home Buyer Guarantee is an extension of the First Home Guarantee (FHG), specifically designed to assist first-time buyers who wish to purchase their first home in regional areas of Australia. This scheme aims to make it easier for people to live and buy homes outside of major metropolitan cities, where property prices are often more affordable but still challenging for first-time buyers.

Much like the regular FHG, the Regional First Home Buyer Guarantee allows eligible buyers to purchase a property with just a 5% deposit, and the government will guarantee up to 15% of the loan. This helps reduce the need for Lenders Mortgage Insurance (LMI), making home ownership more accessible.

Here’s a closer look at the Regional First Home Buyer Guarantee:

1. Eligibility for Regional Areas – This scheme is available for people looking to purchase their first home in regional Australia. The program targets areas outside of the major capital cities, such as Newcastle, Geelong, Ballarat, and other regional centres. It aims to encourage more people to move to regional areas and take advantage of more affordable housing options.
2. Property Price Caps – As with the standard FHG, there are property price caps for the Regional First Home Buyer Guarantee, which vary by state or territory. These caps are usually lower than the price caps for metropolitan areas, reflecting the more affordable property prices in regional Australia.
3. Same Eligibility Requirements – To qualify for the Regional First Home Buyer Guarantee, you must meet the same income limits and other eligibility criteria as the standard FHG, such as being a first-time buyer, meeting the age and residency requirements, and purchasing an owner-occupied property. The property must also meet the eligibility requirements, including price caps and type.
4. Encouraging Regional Development – This initiative is not only aimed at helping first-home buyers but also supports the growth and development of regional areas by making them more attractive for home buyers. The hope is that it will help address housing shortages and support regional economies by encouraging people to settle in these areas.

Tip: If you’re considering purchasing in a regional area, check the specific price caps for that location as they may differ depending on the region. Regional areas can offer a better quality of life, lower living costs, and more affordable property options, making them an attractive choice for first-time home buyers.

How Does the Regional First Home Buyer Guarantee Work?

The Regional First Home Buyer Guarantee works in a similar way to the standard First Home Guarantee (FHG), offering first-time buyers in regional areas a government-backed guarantee to help them purchase their first home with a lower deposit. The aim is to make it easier for buyers in regional Australia to access the property market and reduce the financial barriers often associated with home ownership.

Here’s how the Regional First Home Buyer Guarantee functions:

1. 5% Deposit – Just like the regular FHG, the Regional First Home Buyer Guarantee allows eligible buyers to purchase a home with a deposit as low as 5% of the property’s value. This is significantly lower than the usual deposit requirement, which can be as high as 20% for a typical home loan.
2. Government Guarantee of Up to 15% – To help reduce the cost of Lenders Mortgage Insurance (LMI), the government offers a guarantee of up to 15% of the home loan. This guarantee is not a cash payment but a form of insurance for the lender, making it less risky for them to approve a loan with a lower deposit. As a result, buyers are not required to pay the typically high costs of LMI, which can be thousands of dollars.
3. Eligible Property – The property you wish to buy must be located in a regional area and must meet specific price caps determined by your state or territory. These caps ensure that the program is aimed at supporting affordable housing options for first-time buyers, encouraging them to settle in regional areas.
4. Income Requirements – To qualify for the Regional First Home Buyer Guarantee, your annual income must not exceed the established income caps. For singles, the income limit is $125,000 per year, and for couples, the combined income must be $200,000 or less per year. These limits ensure that the program targets first-time buyers with moderate incomes.
5. Home Loan Application Process – The process to apply for a loan under this guarantee is similar to the regular FHG. You will need to apply through a participating lender and meet all the standard loan application requirements, such as demonstrating your ability to repay the loan. The lender will then submit your application for the government guarantee on your behalf.
6. Lender’s Mortgage Insurance (LMI) Exemption – By using the Regional First Home Buyer Guarantee, you won’t need to pay for Lenders Mortgage Insurance (LMI), even though you’re only contributing a 5% deposit. This is a significant financial benefit, as LMI can add thousands of dollars to the cost of buying a home.
7. Government’s Role – The government guarantees up to 15% of the loan to the lender, which reduces the lender’s risk and allows them to approve the loan with a smaller deposit. While the government does not directly lend the money, its backing provides reassurance to the lender, enabling them to offer you a more affordable loan.

Tip: The Regional First Home Buyer Guarantee is a great opportunity for buyers who are interested in living in regional areas and want to minimise upfront costs. Take the time to explore properties in regional locations that meet the eligibility criteria to get the most out of the scheme.

Who is Eligible for the Regional First Home Buyer Guarantee?

To qualify for the Regional First Home Buyer Guarantee, applicants must meet specific criteria, ensuring the program helps those who need it most. These eligibility requirements are designed to target first-time buyers who are looking to settle in regional areas and are aiming to make home ownership more accessible in less populated areas of Australia. Here’s a breakdown of the eligibility criteria:

1. First-Time Home Buyer Status – The primary requirement for the Regional First Home Buyer Guarantee is that applicants must be purchasing their first home. This means that you should not have previously owned or had an interest in a property in Australia. If you have owned property before, you may not qualify, even if you haven’t owned a home in recent years.
2. Regional Property Purchase – The property you are purchasing must be located in a regional area. This is the key difference between the Regional First Home Buyer Guarantee and the standard First Home Guarantee (FHG). The scheme is specifically designed to encourage people to buy homes in regional areas of Australia rather than in major metropolitan cities. It’s important to ensure that the location of your property falls within the approved regional areas.
3. Income Limits – To ensure that the program targets individuals and couples who need support, there are income caps in place. The maximum income limits are as follows:
   • Single applicants: Must have an annual income of $125,000 or less.
   • Couples: The combined income of both applicants must be $200,000 or less per year. These income thresholds help ensure the program benefits individuals and couples who are not earning excessively high salaries, making home ownership more attainable for those with moderate incomes.
4. Australian Citizens or Permanent Residents – Applicants must be Australian citizens, permanent residents, or New Zealand citizens who are residing in Australia. This requirement ensures that the benefits of the scheme are available to those who have a strong connection to the country.
5. Age Requirements – Applicants must be at least 18 years of age. There is no upper age limit, meaning older Australians who are first-time home buyers are also eligible.
6. Property Type and Price Cap Compliance – The property you wish to purchase must meet certain conditions:
   • It must be an owner-occupied home, meaning it will be your primary place of residence (not for investment purposes).
   • The property must fall within the price caps for regional areas, which vary by state and territory.
7. The government has set these price limits to ensure the scheme is focused on affordable housing and targets first-time buyers who are seeking to buy homes in regional areas, where property prices are generally lower than in metropolitan regions.
8. New or Existing Properties – The scheme applies to both new and existing properties. This gives buyers more flexibility in their home search, as they can look at a range of options available in regional areas.

Tip: Before applying, it’s a good idea to double-check that your chosen property falls within the designated regional areas and that the price is under the set caps. You may also want to review the income eligibility requirements, as exceeding the limit can make you ineligible for the scheme.

What Type of Property Can Be Bought Under the Regional First Home Buyer Guarantee?

When considering the Regional First Home Buyer Guarantee, it’s essential to understand the type of property that qualifies for the scheme. The goal of the guarantee is to support first-time buyers who wish to purchase homes in regional areas, and certain criteria apply to ensure that the properties are suitable for owner-occupation.

Here’s a breakdown of the types of properties you can purchase with the Regional First Home Buyer Guarantee:

1. Owner-Occupied Properties Only – The scheme is designed to assist first-time buyers who are purchasing their primary place of residence. This means the property must be owner-occupied; it cannot be purchased for investment or as a rental property. You must intend to live in the home as your main place of residence for the foreseeable future.
2. New or Existing Homes – You can purchase both new and existing properties under the scheme. Whether you’re looking at newly built homes or established homes, both options qualify as long as they meet the other eligibility criteria, such as price limits and the location in a regional area. This gives first-time buyers more flexibility and a wider range of homes to choose from.
3. House, Townhouse, or Unit – The scheme applies to a variety of residential property types, including:
   • Houses: Detached homes in regional areas are commonly sought after, especially for families or individuals looking for space and privacy.
   • Townhouses: These semi-detached homes can be a great option for buyers seeking lower-maintenance properties with a smaller land footprint.
   • Units and Apartments: While more common in metropolitan areas, units and apartments are also available for purchase under the scheme in regional areas. These properties may be ideal for first-time buyers looking for more affordable or lower-maintenance living options.
4. Property Located in Regional Areas – The property must be situated in a designated regional area as defined by the government. The focus of the Regional First Home Buyer Guarantee is on encouraging people to purchase homes outside of major metropolitan cities. Regional areas typically offer more affordable property prices, and the government aims to boost growth in these regions. Be sure to confirm that the location of your desired property is eligible under the scheme by reviewing the regional area definitions for your state or territory.
5. Property Price Cap Compliance – As with other home loan schemes, the property must meet the price cap set by the government. These caps vary depending on the region, with more expensive areas having higher price limits. For example, a property in a regional city like Newcastle might have a higher price cap than one in a rural area, reflecting the differences in housing markets. Always ensure that the property you wish to buy falls under the applicable price cap to qualify for the guarantee.
6. Vacant Land – Unfortunately, vacant land or land without a habitable dwelling does not qualify for the Regional First Home Buyer Guarantee. The property must have a home on it that you can live in, and land purchased for future construction or development isn’t eligible. The goal is to assist buyers in securing a place to live, not just land for potential future projects.

Tip: When exploring properties, it’s helpful to focus on those that meet all of the criteria: in a regional area, within the price cap limits, and suitable for owner-occupiers. Having a clear understanding of these factors can help you make a more informed decision and avoid wasting time on properties that aren’t eligible under the scheme.

What is a Regional Area?

A regional area refers to parts of Australia that are located outside the major metropolitan cities, such as Sydney, Melbourne, Brisbane, and Perth. These areas typically encompass smaller towns, rural regions, and regional cities that are not considered part of the larger urban centers. The aim of programs like the Regional First Home Buyer Guarantee is to encourage home ownership and economic development in these areas, helping to support regional growth and address housing affordability challenges.

Here’s a closer look at what qualifies as a regional area under the Regional First Home Buyer Guarantee:

1. Government-Defined Regional Areas – The Australian government has defined specific areas as “regional” based on a set of guidelines. These areas are generally outside the boundaries of capital cities and are often spread across rural or regional towns and cities. Regional areas are typically less densely populated and may offer more affordable housing options compared to larger urban centers.
2. Different Regional Classifications – Australia uses a classification system to define different regions, which are often categorised as:
   • Major Regional Cities: These are larger regional hubs that offer a more urbanised lifestyle, with access to amenities like schools, hospitals, and shopping centers. Examples include Newcastle, Geelong, and Coffs Harbour.
   • Other Regional Areas: These are towns and rural locations with smaller populations but still qualify as regional areas for the purpose of the guarantee. Examples include smaller towns like Wagga Wagga, Albury, and Ballarat.
3. Why Regional Areas Are Important – The Australian government promotes the idea of purchasing homes in regional areas to help ease the pressure on housing markets in capital cities. These areas often provide more affordable housing options, which can be a relief for first-time buyers who may struggle to enter the market in more expensive urban centers.
4. Eligibility for Regional Areas – In order to qualify for the Regional First Home Buyer Guarantee, your property must be located in one of these government-defined regional areas. The criteria for eligibility are based on both the location of the property and the affordability factor. As part of the initiative, the government sets specific price thresholds for properties in these regions, ensuring that buyers can access affordable homes within the scheme’s guidelines.
5. How to Find Regional Areas – Determining whether an area qualifies as regional can sometimes be tricky, as the definition may differ slightly across states and territories. However, the government provides a list of eligible regional areas on its website, where you can check if the specific location you’re interested in meets the criteria. You can also consult with local councils or regional real estate agents for guidance on the eligibility of certain areas.

Tip: It’s essential to familiarise yourself with the official list of regional areas to ensure that the location you’re considering qualifies for the Regional First Home Buyer Guarantee. This will save you time and prevent any potential disappointments during the application process.

What Property Price Thresholds Apply?

The Regional First Home Buyer Guarantee is designed to help first-time buyers purchase homes in regional areas, but to ensure the program benefits those who need it most, there are price thresholds that apply to the properties you can buy under the scheme. These price caps ensure that the homes purchased are within an affordable range for first-time buyers and align with the goal of promoting home ownership in regional areas.

Here’s a breakdown of the key property price thresholds that apply under the Regional First Home Buyer Guarantee:

1. State and Territory Price Caps – The property price caps for the Regional First Home Buyer Guarantee vary depending on the state or territory where the property is located. Each region within a state or territory may have different caps to reflect local property market conditions. Larger regional cities may have higher caps than more remote or rural areas.
2. Typical Price Ranges – To give you an idea of the price thresholds, the caps generally fall within these ranges, although the specific amounts can change over time:
   • New South Wales: Regional areas may have price caps ranging from $450,000 to $800,000, depending on the location (with areas like Newcastle or Wagga Wagga having higher caps than more rural locations).
   • Victoria: Price thresholds generally range from $450,000 to $700,000, again depending on whether you’re looking at more urbanised regional cities or smaller towns.
   • Queensland: For Queensland, caps are typically set between $400,000 and $700,000, with more urbanised regions like Cairns or Townsville having higher caps.
   • South Australia: Property prices in regional areas are generally capped between $400,000 and $600,000, but the price cap will depend on the specific region.
   • Western Australia: The price caps in regional WA usually range from $400,000 to $600,000 for properties in towns like Bunbury and Albany.
   • Tasmania: Property prices in regional Tasmania tend to have price caps ranging from $400,000 to $600,000.
   • Northern Territory: The price cap is typically around $500,000 for properties in regional areas such as Darwin or other northern towns.
3. Price Caps and Location – The property price cap is determined by the location of the property. Regional areas with higher demand for housing, such as larger regional cities or areas closer to major metropolitan centers, tend to have higher price thresholds. In contrast, more remote or rural locations have lower caps. This approach helps make sure the program is targeting buyers in areas where affordability is more of a challenge.
4. What’s Included in the Price Cap – The price cap applies to the purchase price of the property, including:
   • The cost of the home itself (whether it’s newly built or existing).
   • Any associated costs that form part of the purchase price, such as stamp duty, but generally excludes any additional costs like renovations or landscaping once you take possession of the property.
5. Why the Price Threshold Matters – These price thresholds are in place to ensure that the program is accessible to first-time buyers without inflating the market in regional areas. By keeping property prices within reasonable limits, the scheme helps balance affordability for buyers while supporting the development of regional areas.

Tip: Before applying for the Regional First Home Buyer Guarantee, make sure you check the price cap that applies to the region where you plan to buy. You can find up-to-date price thresholds on the Australian government’s website or by consulting with a real estate agent who specialises in the area. This ensures you’re considering properties that qualify and prevents you from wasting time on homes that are over the limit.

How to Apply for the Regional First Home Buyer Guarantee

Applying for the Regional First Home Buyer Guarantee is a straightforward process, but there are several key steps you need to follow to ensure your application is successful. By following these steps, you can take full advantage of the scheme and secure a place in a regional area with a reduced deposit.

Here’s how to apply for the Regional First Home Buyer Guarantee:

1. Check Eligibility – Before you begin the application process, make sure you meet the eligibility requirements. This includes confirming that:
   • You are a first-time homebuyer.
   • You meet the income caps for your state or territory.
   • You are purchasing a property in a designated regional area.
   • The property meets the price caps for your region.
   • The property is owner-occupied (you must intend to live in the home as your primary place of residence).
2. Once you confirm that you meet all the requirements, you can move ahead with the application process.
3. Find a Participating Lender – The Regional First Home Buyer Guarantee is administered through participating lenders (banks, credit unions, and other financial institutions). To apply, you’ll need to approach one of these lenders to start the process. A participating lender will help guide you through the application, assess your financial situation, and submit the necessary paperwork to the government on your behalf.
   You can find a list of participating lenders on the official government website or by speaking with a mortgage broker who is familiar with the scheme.
4. Get Pre-Approval for Your Loan – To proceed with the application, it’s important to secure pre-approval for your home loan. This means your lender will assess your financial situation, including your income, credit history, and deposit amount, to determine if you qualify for a loan. If you’re approved, your lender will issue you a pre-approval letter, which you’ll need to submit as part of your application for the scheme.
5. Submit Your Application – Once you have secured pre-approval from a participating lender, you can submit your application for the Regional First Home Buyer Guarantee. Your lender will help you complete the necessary paperwork and submit it to the National Housing Finance and Investment Corporation (NHFIC), which oversees the guarantee program. The application will include:
   • Your personal details and contact information.
   • Evidence of your eligibility (first-time homebuyer status, income details, etc.).
   • Information about the property you intend to purchase (location, price, and type).
   • Documentation from your lender confirming pre-approval for the loan.
6. Wait for Approval – After you’ve submitted your application, the NHFIC will review it. If everything checks out, they will provide confirmation of your approval for the guarantee. This process may take a few weeks, so be patient as your application is being processed. Once you’re approved, you’ll receive a certificate from NHFIC confirming your eligibility for the scheme.
7. Sign the Loan Documents – Once your application is approved and you’ve been granted the Regional First Home Buyer Guarantee, you can proceed with finalising your home loan. This involves signing the formal loan documents with your lender. The lender will also provide you with the final terms of your loan, including the interest rate, repayment schedule, and any other details you need to know.
8. Purchase Your Home – With your loan approved and the guarantee in place, you can now proceed with purchasing your new home in a regional area. The Regional First Home Buyer Guarantee allows you to buy a home with a deposit as low as 5%, making it easier to enter the property market. Once the purchase is complete, you can move into your new home and start enjoying the benefits of homeownership in a regional area.

Tip: It’s highly recommended to work with a mortgage broker or financial advisor when applying for the Regional First Home Buyer Guarantee. These specialists can guide you through the application process, help you meet all the necessary requirements, and assist in finding the right lender for your needs.By following these steps and ensuring you meet the eligibility requirements, you can make the most of the Regional First Home Buyer Guarantee and secure your new home with a reduced deposit.

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This page provides general information only and has been prepared without taking into account your objectives, financial situation, or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax, or financial advice and you should always seek professional advice in relation to your individual circumstances.

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