The Regional First Home Buyer Guarantee is an Australian Government initiative that aims to support eligible regional first home buyers to purchase a home sooner.
The Regional First Home Buyer Guarantee can be used to purchase a modest home with a saved minimum deposit of 5% of the Property Value. This is because Housing Australia guarantees to a Participating Lender like Australian Mutual Bank up to 15 percent of the value of the property purchased that is financed by an eligible regional first home buyer’s home loan. The Guarantee is not a cash payment or a deposit for a home loan.
Eligible regional first home buyers can use the Regional First Home Buyer Guarantee in conjunction with other government programs like the First Home Super Saver Scheme or state and territory first home owner grants and stamp duty concessions.
By taking advantage of the Regional First Home Buyer Guarantee:
- You only need to save a minimum deposit of 5% of the Property Value
- • you (or the person you’re applying with in a joint application) have lived in the regional area you’re buying in, or an adjacent regional area, for the 12 months up to the Home Loan Date*
Am I eligible?
The following eligibility criteria apply:
- Citizenship and permanent residency – be an Australian citizen(s) or permanent resident(s) at the Home Loan Date*.
- Living and buying in a regional area – you (or the person you’re applying with in a joint application) have lived in the regional area you’re buying in, or an adjacent regional area, for the 12 months up to the Home Loan Date*.
- Income - your taxable income must be at or below the income cap - $125,000 per annum, for individual or a combined $200,000 per annum, for joint applicants - as shown on the Notice of Assessment (for the previous financial year) issued by the Australian Taxation Office.
- Deposit - you must have minimum deposit savings of 5% of the Property Value
- Prior property ownership – you must be a first home buyer or not have owned a property in Australia in the last 10 years (applies to both in a joint application) at the Home Loan Date*
- Owner-occupier – you must buy or build a home to live in (investment properties are not eligible).
- Minimum age – you must be at least 18 years old
- Price cap - the property you purchase must be residential and within the Price caps set under the scheme.
What type of property can be bought?
- an existing house, townhouse or apartment.
- a house and land package
- vacant land with separate contract to build a home
- an off-the-plan apartment or townhouse
You can find more information about the Regional First Home Buyer Guarantee and eligibility criteria on the Housing Australia website.
The application process
Loan applications can be submitted online, and Guarantee places are strictly limited.
Once received we will assess your loan for suitability and whilst doing so temporarily reserve a Guarantee place for you for a period of 10 days.
Once we have verified that you meet our lending requirements and the requirements set out by the Guarantee, your loan will be approved, and we will go about securing you a Guarantee place for a further 90 days.
