From 1 October 2025, the Regional First Home Buyer Guarantee will merge into the First Home Guarantee This means regional buyers can now access the same benefits — purchase with as little as 5% deposit and pay no Lenders Mortgage Insurance (LMI) — under one simplified scheme.
The Regional First Home Buyer Guarantee (RFHBG) is designed to help first home buyers in designated regional areas purchase a home with as little as a 5% deposit.
Originally announced as the “Regional First Home Buyer Support Scheme” during the 2022 federal election campaign, the initiative aimed to triple the number of regional Australians who could access a government-backed Home Guarantee Scheme.
Renamed and officially launched on 1 October 2022, the RFHBG is scheduled to run until 30 June 2025.
What Happened To The Regional Home Guarantee?
The scheme was officially absorbed into the First Home Guarantee (FHBG) on October 1, 2025. This means regional buyers still receive the exact same benefits, like a 5% minimum deposit, but under a single, simplified program without the old restrictions.
The Australian Government consolidated these initiatives to streamline the home-buying process. Consequently, eligible applicants can secure a property sooner, maximizing their borrowing power while completely avoiding Lenders Mortgage Insurance (LMI).
The October 2025 Merger Explained
The merger transitions the RFHBG into the broader Home Guarantee Scheme (HGS) framework. This integration eliminates old financial restrictions, granting regional buyers unprecedented access to the 2026 property market.
However, certain regional stipulations remain. For example, the 12-month regional residency rule still applies if you wish to access specific regional property price caps. According to Housing Australia, this ensures the initiative continues to support genuine regional growth.
What Is A Regional Area?
The National Housing Finance and Investment Corporation (NHFIC) defines a regional area as:
- Statistical Area Level 4 areas in a state or the Northern Territory that are not a capital city of that state or territory; and Norfolk Island; or the territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands.
- The ACT and greater capital city areas of each state and the Northern Territory are excluded from the RFHBG.
Updated Eligibility Criteria for Regional Buyers
What are the new eligibility requirements for regional buyers? The updated FHBG criteria are highly favourable, focusing primarily on age, citizenship, and past property ownership rather than strict financial caps.
To qualify under the new merged FHBG scheme, you must meet the following checklist:
- Citizenship: You must be an Australian citizen or a permanent resident.
- Age: All applicants must be 18+ years old.
- Deposit: You need a 5% minimum deposit saved.
- Property Ownership: You must not have owned property in Australia in the last 10 years.
- Intent: The purchased property must be an owner-occupier / principal place of residence.
No More Income Limits
Are there income limits for the new scheme? No. In contrast to the old RFHBG, the $125,000 (single) and $200,000 (couple) income limits have been permanently abolished as of October 2025.
This monumental shift means buyers of all income levels can apply. As a result, high-income earners who previously missed out can now qualify and save thousands of dollars in upfront LMI costs.
Unlimited Scheme Places
Is there a cap on how many people can use the scheme? No. The previous 10,000 annual place limit for regional buyers was entirely removed during the October 2025 update.
There are no more waiting lists or frantic applications at the start of the financial year. Every eligible applicant is now guaranteed access to the 5% deposit scheme whenever they are ready to buy.
Increased Regional Property Price Caps
Have property price caps increased for regional buyers? Yes, property price caps have been significantly increased to reflect the realities of the 2026 property market, allowing you to look at higher-value homes.
Housing Australia defines a regional area as a Statistical Area Level 4 (SA4) that is not a capital city or specific territory. Buying in these designated areas now affords you much higher purchasing power.
New Regional Property Price Caps
The table below outlines the new, higher property price thresholds by state and region for 2026.
| State / Territory | Regional Property Price Cap |
|---|---|
| Victoria (VIC) | $950,000 |
| New South Wales (NSW) | $800,000 |
| Queensland (QLD) | $750,000 |
| Western Australia (WA) | $700,000 |
| South Australia (SA) | $650,000 |
| Tasmania (TAS) | $650,000 |
| Northern Territory (NT) | $600,000 |
| Jervis Bay Territory & Norfolk Island | $600,000 |
For example, purchasing an $800,000 home in regional NSW previously required a massive upfront sum. Now, you only need a $40,000 deposit (5%) instead of a $160,000 deposit (20%), allowing you to bypass Lenders Mortgage Insurance entirely.
What Other Schemes Are Available?
Besides the Regional Home Guarantee, there are two other schemes under the
Home Guarantee Scheme:
-
First Home Guarantee
(formerly known as the First Home Loan Deposit Scheme): For first-home buyers with a deposit of 5%. -
Family Home Guarantee:
Single parents with dependants can buy or build a new home with a deposit of just 2% of the property value.
The New Home Guarantee
is an extension of the First Home Guarantee for first-home buyers buying a new home. This scheme will end on 30 June 2022.
We also have options available if you don’t qualify for a scheme:
- First-home buyers can get grants and stamp duty concessions
- With a guarantor, you can borrow up to 105% of the property value to buy a home.
-
There are low deposit and
no deposit home loans available.
How To Apply For The Regional First Home Buyer Guarantee
Our mortgage brokers can help you lodge your application for a place in any scheme. Call us on 1300 889 743 or enquire online today!
Frequently Asked Questions (FAQs)
Is the Regional First Home Buyer Guarantee Still A Standalone Scheme?
No. As of October 2025, the Regional First Home Buyer Guarantee has merged with the First Home Guarantee (FHBG). It is no longer a standalone scheme, but it continues offering the exact same 5% deposit and zero LMI benefits to eligible regional home buyers.
Are There Income Limits For The 5% Deposit Scheme?
Does The Regional Home Guarantee Still Exist?
Can I Combine The 5% Deposit Scheme With The First Home Owner Grant?
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