Guide to the Regional Home Ownership Guarantee

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Live in a regional area and seek to realize the great Australian dream? Here’s how the Regional Home Ownership Guarantee can help you.

Available from October 1, 2022, the new guarantee makes it possible to acquire up to 10,000 regional residences each year by first-time buyers with a down payment of only 5%.

Here you’ll find what you need to know about the program, including requirements for first-time homebuyers and areas classified as “regional” to qualify.

What is the Regional Home Ownership Guarantee?

The Regional Homeownership Guarantee Scheme is an extension of the Federal Government’s existing Housing Guarantee Scheme designed to give a boost to first-time homebuyers in regional Australia.

From October 2022 to June 2025, 10,000 guarantees each year will help first-time home buyers buy a regional home with as little as a 5% down payment without having to pay Lenders Mortgage Insurance (LMI). This means you can borrow up to 95% of the property’s value, with the federal government offering the lender a guarantee of up to 15% of the property’s value.

The Regional Homeownership Guarantee is only available to Australians who have lived in the area they wish to buy in for at least one year.

The home warranty program now includes:

  • Regional Home Ownership Guarantee – offering 10,000 guarantees each year.

  • First Home Buyer Guarantee – offering 35,000 guarantees each year.

  • Family Home Guarantee – offering 5,000 guarantees each year.

What is classified as regional property?

The Australian Government’s National Housing Finance and Investment Corporation (NHFIC) defines a regional area as areas of a state or Northern Territory that are not a capital city of that state or territory.

The major capitals of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the Regional Homeownership Guarantee. Homebuyers in these areas may qualify for the First Home Warranty or Family Home Warranty.

The NHFIC provides access to a Regional Auditorallowing homebuyers to enter the suburb (or postcode) of their current home and the suburb (or postcode) they wish to purchase in, to confirm whether they would be eligible for the program.

Under the Regional Home Ownership Guarantee, homebuyers can purchase residential property, including:

  • An existing house, townhouse or apartment.
  • A house and land unit.
  • Land and a separate contract to build a house.
  • An off-plan apartment or townhouse.

Regional home ownership guarantee price cap

For first-time home buyers who want to take advantage of the program, there are price caps on the property you can buy. Ultimately, the cap depends on the state or territory you live in and the regional area within the states. The table below shows how much you can spend on a first home in specific regions to qualify for the Regional Homeownership Guarantee.

State

Regional Center*

All other regional areas

New South Wales

$900,000

$750,000

CIV

$800,000

$650,000

QLD

$700,000

$550,000

Washington

$450,000

HER

$450,000

TAS

$450,000

*Regional centers are classified as Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.

Territory

Regional area

LAW

Not applicable

NWT Regional.

$600,000

Jervis Bay Territory and Norfolk Island

$550,000

Christmas Island and Cocos (Keeling) Islands

$400,000

Eligibility for the Regional Home Ownership Guarantee

To be eligible, homebuyers, or at least one borrower when applying as a couple, must have resided in the regional area or adjacent regional area in which they intend to purchase, during the 12 month period preceding the date on which they sign their mortgage contract. .

To benefit from this federal government program, you will need to:

  • Living outside a capital.
  • Be an Australian citizen over the age of 18.
  • Be a first-time home buyer.
  • Live in the purchased house.
  • Have an annual taxable income of less than $125,001 for singles or $200,001 for couples.
  • Have lived in the area for at least 12 months.
  • Respect the real estate price threshold for the region.

It is important to note that members of the Australian Defense Force may be eligible for a partial exemption from the eligibility requirements.

Homebuyers who are not eligible for the Regional Home Ownership Guarantee may be eligible for the First Home Guarantee or the Family Home Guarantee.

Before enrolling in any of these programs, homebuyers should discuss their personal circumstances with a participating lender.


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The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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