Property industry groups have welcomed the Federal Government’s move to support regional homebuyers under a new regional first home buyer guarantee scheme. 

The RFHBG will help regional first home buyers purchase a home sooner by allowing them to purchase a home with as little as 5% deposit without paying lenders mortgage insurance. 

From 1 October through to 30 June 2023, there will be 10,000 RFHBG places available for eligible regional first home buyers.   

The Federal Government, through the National Housing Finance and Investment Corporation, will guarantee eligible home loans up to a maximum amount of 15% of the value of the property.  

The scheme, which was first announced during the recent federal election, is available under the government’s existing Home Guarantee Scheme. 

Kristin Brookfield, HIA Chief Executive Industry Policy, said HIA had supported the First Home Guarantee program from its inception.  

“The program continues to provide a pathway into home ownership for people who are struggling to overcome the deposit gap but could manage regular mortgage payments if they had the chance,” Brookfield said. 

“It is universally recognised that saving for a deposit is the largest obstacle to achieving home ownership. 

“Since 2019 the First Home Guarantee scheme has helped tens of thousands of Australians get into their first home.” 

Property Council Chief Executive Ken Morrison said the targeted support for first home buyers living in regional Australia will make it easier for more Australians to access housing.  

“Regional Australia has seen steep increases in prices making it difficult for locals to save for a deposit,” Morrison said. 

“Bridging the deposit gap is a significant problem for first-time home buyers, and the Regional First Home Buyer Guarantee scheme is a well-designed scheme that will assist eligible home buyers enter the market. 

“The expansion of the Home Guarantee Scheme to support regional buyers will make it easier for more Australians to secure their dream of home ownership and is a welcomed initiative.”

“NHFIC welcomes this targeted support for first home buyers living in regional Australia,” said NHFIC CEO Nathan Dal Bon.

“Making it easier for more Australians to access housing is our fundamental purpose, and programs like this are even more important as aspiring homeowners cope with increasing cost of living pressures.”