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How The Regional Home Guarantee Works


Given the levels of demand for real estate outside of our nation’s capital cities, the introduction of the Regional Home Guarantee is set to be a gamechanger. 

It’s been a big few years for the world of real estate, and nobody predicted the record breaking property prices that we’ve seen right around the nation. However, the real surprise has come from the surge in buyer activity outside of the capital cities, with regional Australia dominating the headlines thanks to its largely double digit growth. 

While the recently announced Federal Budget attempted to tackle our growing number of housing affordability issues through the expansion of the First Home Loan Deposit Scheme, the plan also unveiled a new initiative to encourage more Aussies to buy and build in the bush: the Regional Home Guarantee. 

An Introduction To The Regional Home Guarantee

The First Home Loan Deposit Scheme (FHLDS) was first released on January 1, 2020, and is an Australian Government initiative to support eligible first home buyers to build or purchase a first home sooner. While buyers are usually required to save a 20% deposit or otherwise pay Lenders Mortgage Insurance, under the FHLDS, eligible first home buyers can purchase or build a new home with a deposit of as little as 5%, with the government actually guaranteeing the remaining amount.

Originally offering 20,000 government guarantor style loans, the scheme was set to expire on June 30 2022. However, changes outlined in the 2022 Budget have not only expanded the time frame, but has rebranded the scheme as the First Home Guarantee and more than doubled the availability in addition to unveiling a new plan on getting first home buyers into properties faster, such as the debut of the Regional Home Guarantee.

As a new scheme designed to provide relief to those purchasing a home in the booming regional areas of the nation, the Regional Home Guarantee will provide 10, 000 places per year for first home buyers and people who have not owned a home for five years. Running from 1 October 2022 until 30 June 2025, the Regional Home Guarantee will assist applicants to buy a newly built home in a regional location with a minimum 5% deposit. 

To be eligible for the program, applicants must be a first-home buyer or not have owned a home within the past five years, be an Australian citizen or permanent resident, and purchase a newly built home, not an existing one. In addition, the price caps that apply to other schemes and income limits are different for the Regional Home Guarantee when compared to other financial schemes released by the government. 

In essence, the Regional Home Guarantee has been designed to be an expansion of the First Home Loan Deposit Scheme, ensuring that regional applicants have their own designated caps as well as opening up opportunities for those who may have previously owned property, such as aging Australians and single parents who live in regional parts of the nation. 

Another major point of difference that sets the Regional Home Guarantee apart is that it’s only applicable for newly built dwellings. While industry experts speculate that this is in place to keep regional building sectors moving, the scheme defines newly built properties as – 

  • Newly constructed dwellings (a freestanding house, townhouse or apartment)
  • Off-the-plan dwellings (a freestanding house, townhouse or apartment)
  • House and land packages
  • Land and a separate contract to build a new home

While many applaud the move as a way to ensure regional and rural parts of Australia receive the infrastructure it desperately needs, others speculate that homeowners should expect longer than usual construction wait times thanks to building material shortages and extremely busy trade professionals still navigating a backlog of work. 

If you’re in the process of trying to purchase your first home this year, it’s always a good idea to partner with a finance professional who knows the ins and outs of these types of programs and which option is the ideal fit for you – but where do you find one?

How To Streamline Your First Property Purchase  

The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. However, first home buyers don’t have it easy, which is why we’ve compiled our very own in depth First Home Buyers Guide. This resource is completely free to download, and can be a game changer when it comes to ensuring that you’re up to speed on how to get into your first home faster. 

With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best, and another example of this is the free to use Savings Goal Calculator found on the Cherry Lending & Finance website. 

If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.  Subject to lenders terms and conditions, fees and charges and eligibility apply.

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