Regional First Home Buyer Guarantee

What Was the Regional First Home Buyer Guarantee?

The Regional First Home Buyer Guarantee (RFHBG) was part of the broader Home Guarantee Scheme, supported by the Australian Government and administered by Housing Australia. It helped eligible Australians living in regional areas buy their first home with a smaller deposit, without needing to pay LMI. It closed to new applicants on 1 October 2025, when the First Home Guarantee was expanded into the 5% Deposit Scheme.

The same benefit is still available through the 5% Deposit Scheme. If you've saved just 5% of the property value, you could be approved for a home loan that's typically reserved for borrowers with a 20% deposit. The government provides a guarantee to the lender for up to 15% of the property’s value, allowing you to enter the property market sooner and save approximately $10,000 to $30,000 in Lenders Mortgage Insurance (LMI), depending on your loan size.

If you're looking for a way to own your first home outside the city, the 5% Deposit Scheme is now the one to look at.

Who Is Eligible Now?

With the regional scheme closed, the rules that matter are the 5% Deposit Scheme's, set by Housing Australia. These conditions ensure the scheme supports genuine first-time buyers, wherever they buy.

Here’s a quick checklist to determine your eligibility:

1. Be an Australian citizen or permanent resident
2. Aged 18 years or older
3. Be a first home buyer, or not have owned property in Australia in the past 10 years.
4. Be purchasing a home to live in (not for investment)
5. Have a minimum 5% deposit saved.
6. Buy within the property price cap for the area.

There is no income cap and no requirement to have lived in a regional area. Both rules belonged to the closed regional scheme, which capped income at $125,000 (single) or $200,000 (couple) and required 12 months living in the region.

Want to know how much house you could buy with your current savings? Try our home affordability calculator to estimate your buying potential.

If you’re unsure whether your personal situation qualifies, Stryve Finance can help you assess your eligibility and guide you through your options, with no guesswork required.

What Counts as a Regional Area?

Under the 5% Deposit Scheme, where you buy no longer decides whether you qualify. It decides which price cap applies. Each state has a higher cap for its capital city and regional centres, and a lower cap for the rest of the state. Regional centres are defined using the Australian Bureau of Statistics SA4 classification.

These regional centres get the higher, capital city cap:

• NSW: Central Coast, Coffs Harbour-Grafton, Illawarra, Mid North Coast, Newcastle and Lake Macquarie, Richmond-Tweed
• VIC: Geelong
• QLD: Gold Coast, Sunshine Coast

Other regional areas, such as Toowoomba, Bendigo and Launceston, use the rest-of-state cap. One suburb can span postcodes with different caps, so check the official postcode search on firsthomebuyers.gov.au. At Stryve Finance, we can confirm the cap for your exact postcode.

Property and Price Caps

While the 5% Deposit Scheme is generous, it does have property price limits based on where you buy. This ensures the support is targeted at affordable housing and truly first-time buyers.

The government raised property price caps across Australia on 1 October 2025, and Darwin's cap rose again on 1 July 2026, from $600,000 to $750,000. These changes make more properties in popular areas eligible under the scheme.

The 5% Deposit Scheme can be used to:

• Buy an existing home
• Build a new home
• Buy land and build
• Purchase off-the-plan properties

If your property falls within these caps, you’re in a strong position to take advantage of this scheme. As your broker, Stryve Finance will help you find the right home loan and ensure it meets all eligibility requirements.

How Stryve Finance Can Help You

Working with a mortgage broker in regional Australia gives you access to more than just loans; it provides you with a trusted advisor to guide your entire buying journey. At Stryve Finance, we understand every step of the 5% Deposit Scheme, and we use that knowledge to help our clients succeed.

Here’s how we support you:

• Access to lenders who participate in the scheme
• Help gather eligibility documents
• Advice on structuring your loan application for success
• Save you hours of paperwork and back-and-forth
• Provide personalised loan options that suit your budget and goals

Whether you’re purchasing in Bendigo, Ballarat, or Bega, Stryve Finance is here to guide you through every step of the process, every step of the way.

Benefits of Buying Regional with a 5% Deposit

There are clear and compelling benefits to using the 5% Deposit Scheme in a regional area, especially if you're early in your savings journey or struggling with rising home prices.

Here’s what makes it a smart move:

• Buy your first home sooner: no need to wait for a 20% deposit
• Only 5% deposit required: great for younger or single buyers
• No Lenders Mortgage Insurance (LMI): saving you ~$10,000–$30,000
• Live in a growing regional area with a better lifestyle and affordability
• Government-backed security: builds trust with lenders
• Can be combined with the First Home Owner Grant (FHOG) in most states

In short, it lowers the most significant barrier to homeownership, the upfront cost, and gives you a genuine chance to start building wealth through property.

Step-by-Step: How to Apply with Stryve

Applying for the 5% Deposit Scheme doesn't need to be stressful. We make it simple and seamless:

Step 1: Book Your Free Consultation

Everything starts with a no-obligation chat. You’ll speak with a Stryve Finance mortgage broker who understands both the 5% Deposit Scheme and your local market. We’ll get to know your goals, review your current financial position, and explain how the scheme could work for you.

Step 2: Confirm Your Eligibility

Next, we’ll guide you through the process of confirming your eligibility for the scheme. This includes reviewing your deposit savings and property history, checking the price cap for the area you're buying in, and ensuring that you meet all the government’s requirements. We’ll also help you gather any documents needed to support your application.

Step 3: Match You With a Participating Lender

Once we’ve confirmed that you qualify, we’ll search our network of participating lenders to find the best home loan options for your situation. As mortgage brokers, we work for you, not the banks, which means we focus on securing the best loan terms, rates, and features available through the guarantee.

Step 4: Submit Your Application

With the right loan selected, we’ll help you prepare and lodge your application. We handle all paperwork, communications with the lender, and any extra requests that may arise during the process. Our goal is to keep everything smooth and efficient, so you can focus on planning your move.

Step 5: Get Approved and Move In

Once your loan is approved and the settlement is complete, it’s time to celebrate. You’re officially a first home owner! With the help of Stryve Finance and the 5% Deposit Scheme, you’ll achieve homeownership with only a 5% deposit and avoid the added cost of Lenders Mortgage Insurance, potentially saving you thousands.

The process can move quickly, primarily when you work with a broker who is familiar with the system. Many buyers are surprised by how soon they can go from “maybe” to “move-in day.”

Regional Guarantee vs 5% Deposit Scheme: What Changed?

You may have heard of the First Home Guarantee (FHBG). Since 1 October 2025 it is the 5% Deposit Scheme, which replaced the Regional FHBG. Both offer a 5% deposit and no LMI, but the rules are different:

If you were looking at the regional scheme, the 5% Deposit Scheme now covers the same ground with fewer restrictions. At Stryve Finance, we'll evaluate your circumstances and guide you to the scheme that gives you the best result.

To explore more ways to save on your first home purchase, check out our full guide on Grants and Schemes for First Home Buyers.

Frequently Asked Questions

• Can I apply as a couple?

  Yes. Under the 5% Deposit Scheme you can apply alone or with one other person, such as a partner, friend or family member. There is no regional residency requirement.

• Is the scheme available for off-the-plan or new builds?

  Yes. You can use the 5% Deposit Scheme to buy off-the-plan, build on land, or buy a newly built home, provided the price is within the cap for the area.

• What happens if I move out after purchase?

  You must move in within 6 months of settlement and live in the home as your principal residence. If your plans change, talk to your lender, because the guarantee only covers owner-occupied homes.

• Can I use this scheme with the First Home Owner Grant (FHOG)?

  Yes. The 5% Deposit Scheme can be combined with your state's First Home Owner Grant and first home stamp duty concessions.

Ready to Buy Your First Regional Home?

If you’re dreaming of your first home in a regional area, the 5% Deposit Scheme could be your golden opportunity. At Stryve Finance, we take the guesswork out of the process and put you in control of your home-buying journey. Book a free chat to get started.

Waiting for a 20% deposit could delay your dreams by years. Let Stryve Finance help you secure your first home sooner with the support of the 5% Deposit Scheme.

This content is provided for general information purposes only and does not take into account your personal financial circumstances or goals. It should not be considered financial advice or a recommendation. We strongly recommend consulting a licensed financial adviser before making any decisions based on this information.