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The Australian Government recently introduced a new scheme to help people living in regional areas purchase their first home. The Regional First Home Buyer Guarantee (RFHBG) allows eligible Australians to purchase a home with a deposit of 5% or more.

Usually, it is difficult to purchase a home with a deposit of less than 20% because buyers must incur additional costs, such as Lenders Mortgage Insurance (LMI). So, this scheme will come as a welcome relief to people who have been looking to enter the property market but have not had the funds to do so.

Director of Juno Lending & Finance, Nathanial Campbell, says “the Government recognised that the major hurdle for first home buyers was not the ability to meet potential loan repayments, but more so saving a suitable deposit.”

“The Regional First Home Buyer Guarantee Scheme makes it possible to purchase a home with a 5% deposit, without the need to pay Lenders Mortgage Insurance, saving up to $17K.”

The program offers 10,000 guarantees each financial year for the next three years. Under this scheme, an existing house, townhouse or apartment can be purchased, along with a house and land package or just land (and a separate contract to build), which is good news for all of our clients.

To be eligible for this guarantee, you must be:

There are 32 participating lenders offering the RFHBG to homebuyers, including all of Australia’s biggest banks.

For more information, visit the National Housing and Investment Corporation.