Regional First Home
Buyer Guarantee.
The RFHBG helped eligible first-home buyers in regional Australia purchase with just a 5% deposit and no LMI — the government guaranteed up to 15% of the loan. From October 2025, it merged into the unified First Home Guarantee with expanded access.
How the Guarantee Works
The RFHBG does not give you money — it gives lenders confidence. By guaranteeing part of your loan, the government removes the need for LMI and lets you buy sooner with a smaller deposit.
Example: $800,000 Property in Newcastle
The minimum genuine savings required to enter the scheme.
The government backs 15% of the loan value — not paid to you, but assurance given to the lender to waive LMI.
Without the scheme, LMI on a 95% LVR loan could add thousands of dollars to your upfront costs.
Important: The government guarantee is not cash paid to the borrower. It is a legal backing that gives lenders confidence so they can waive LMI fees and allow a smaller deposit. You still own 100% of your home.
Eligibility Criteria
The traditional RFHBG rules applied before October 2025. Regional buyers now access the same benefits through the expanded First Home Guarantee — with broader eligibility.
Traditional Rules (Pre-Oct 2025)
- ✓Regional locationMust buy in an ABS SA4 area outside capital cities. At least one applicant must have lived in the region (or adjacent) for 12 months prior.
- ✓First home buyer statusMust not have owned property in Australia in the last 10 years.
- ✓5% minimum depositAt least 5% of the property value saved as a deposit.
- ✓Income limits$125,000 individual or $200,000 combined in the prior financial year.
- ✓Owner-occupierProperty must be your primary place of residence — not an investment.
- ✓Age & citizenshipMust be at least 18 and an Australian citizen or permanent resident.
What Is a Regional Area?
- ✓ ABS Statistical Area Level 4 (SA4) regions outside capital cities
- ✓ Norfolk Island
- ✓ Jervis Bay Territory
- ✓ Christmas Island
- ✓ Cocos (Keeling) Islands
Excluded: The Australian Capital Territory (ACT) and all greater capital city areas are not eligible under the RFHBG.
Owner-Occupier Requirement
The property must be your principal place of residence. Investment properties do not qualify. If your circumstances change after purchase, you must notify your lender.
Still Need to Qualify for a Loan
The guarantee removes LMI — but you must still meet the lender's servicing requirements, pass credit checks, provide full income verification, and satisfy responsible lending obligations. The scheme does not guarantee loan approval.
Changes from October 2025
From 1 October 2025, the RFHBG merged into the expanded First Home Guarantee under the broader Home Guarantee Scheme — simplifying access and broadening eligibility for regional buyers.
Before — RFHBG
- → Separate regional scheme with its own allocation
- → Income cap: $125K individual / $200K combined
- → Must have lived in the region for 12 months prior
- → Annual place limit (e.g. 10,000 in FY2024–25)
- → Separate price caps for regional areas
After — Unified First Home Guarantee
- ✓No separate RFHBGRegional buyers now use the expanded First Home Guarantee — one unified scheme.
- ✓Income caps removedHigher earners can now qualify if other criteria are met.
- ✓No residency requirementNo longer need 12 months' prior residence in the regional area.
- ✓Higher price capsCaps increased and vary by region — up to $1.5M in some areas.
- ✓Unlimited placesNo cap on the number of places available, unlike the earlier RFHBG allocation.
What stays the same: Regional buyers continue to purchase with a 5% deposit, borrow up to 95% of the property value, and pay no LMI. Price caps and other conditions still apply — confirm your area with a Participating Lender.
Key Benefits
The RFHBG was designed to make regional homeownership more accessible — with real financial advantages for eligible buyers.
Buy sooner
Enter the property market earlier without needing to save the traditional 20% deposit — cutting years off your savings timeline.
No LMI costs
Eligible buyers avoid Lenders Mortgage Insurance entirely — saving thousands of dollars that would otherwise be added to your upfront costs or loan.
Government-backed
The government guarantees up to 15% of the loan value, reducing lender risk and allowing you to borrow up to 95% of the property value confidently.
Why Use a Mortgage Broker?
Eligible Properties
The property must be purchased as your principal place of residence and fall within the scheme's regional price caps for your area.
Eligible Property Types
Refinancing Rules
Price Cap Rule
If the purchase price exceeds the property price cap for your region, you will not be eligible — even if it exceeds the cap by a small amount. Always confirm the cap for your specific area with a Participating Lender before proceeding.
Combining with Other Grants
You may be able to combine the RFHBG with state-based benefits such as stamp duty concessions or the First Home Owner Grant, depending on your eligibility and state regulations.
If property values fall
You remain responsible for repaying the full loan amount. The government guarantee only covers a portion of the loan to the lender in case of default — it does not protect you from market fluctuations or negative equity.
Government doesn't own your home
The government guarantee is not shared equity. The government does not take ownership of your property or receive a share of any future capital gains — you own 100% from settlement.
Frequently Asked Questions
Everything you need to know about the Regional First Home Buyer Guarantee.