Regional First Home Buyer Guarantee
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:
- Applying as an individual or couple
- An Australian citizen
- At least 18 years of age
- Owner-occupiers in the property
- First home buyers
- Living or have lived in the regional area
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.