Buying your first home is one of life’s most significant financial steps, and if you’re doing it in a regional area, the Regional First Home Buyer Guarantee can help you make it happen sooner. This federal government scheme is designed to reduce the upfront costs of purchasing your first home by allowing eligible buyers to secure a property with just a 5% deposit, without incurring Lenders Mortgage Insurance (LMI) costs.
At Stryve Finance, we specialise in helping first home buyers in regional Australia navigate this scheme, find the right home loan, and get into the market faster. In this article, we break down everything you need to know, from who’s eligible to how to apply, with expert tips from your trusted mortgage broker.
What Is the Regional First Home Buyer Guarantee?
The Regional First Home Buyer Guarantee (RFHBG) is part of the broader Home Guarantee Scheme, supported by the Australian Government and administered by Housing Australia. Its core goal is to help eligible Australians living in regional areas buy their first home with a smaller deposit, without needing to pay LMI.
That means 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, this is the scheme designed for you.
Who Is Eligible?
To take advantage of the Regional First Home Buyer Guarantee, you need to meet specific eligibility criteria set by Housing Australia. These conditions ensure the scheme supports the people who need it most, genuine first-time buyers with strong ties to regional communities.
Here’s a quick checklist to determine your eligibility:
- Be an Australian citizen or permanent resident
- Aged 18 years or older
- Have not owned any property in the past 10 years.
- Be purchasing a home to live in (not for investment)
- Earn under $125,000 (single) or $200,000 (couple) annually.
- Have a minimum 5% deposit saved.
- Have lived in a regional or adjacent area for at least 12 months.
Want to know how much you could borrow with your current savings? Try our purchasing power 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?
The scheme defines a regional area using the Australian Bureau of Statistics SA4 classification, which excludes capital cities but includes many surrounding and inland regions. So, even if you live in a large regional centre like Geelong or Toowoomba, you may still be eligible under the scheme.
Some well-known eligible regions include:
- Newcastle and Lake Macquarie
- Geelong
- Toowoomba
- Bendigo
- Launceston
If you’ve been living in any of these areas or an adjacent regional zone for at least 12 months, you could be eligible. At Stryve Finance, we can help you confirm your postcode’s eligibility using up‑to‑date regional mapping tools.
Property and Price Caps
While the scheme is generous, it does have property price limits based on your region. This ensures the support is targeted at affordable housing and truly first-time buyers.
To keep up with rising home values, the government is raising property price caps across Australia, effective 1 October 2025. This change makes more properties in popular areas eligible under the scheme.
| Location | Old Cap | New Cap (From October 2025) |
|---|---|---|
| New South Wales - capital city and regional centre | $900,000 | $1,500,000 |
| New South Wales - other | $750,000 | $800,000 |
| Victoria - capital city and regional centre | $800,000 | $950,000 |
| Victoria - other | $650,000 | $650,000 |
| Queensland - capital city and regional centre | $700,000 | $1,000,000 |
| Queensland - other | $550,000 | $700,000 |
| Western Australia - capital city | $600,000 | $850,000 |
| Western Australia - other | $450,000 | $600,000 |
| South Australia - capital city | $600,000 | $900,000 |
| South Australia - other | $450,000 | $500,000 |
| Tasmania - capital city | $600,000 | $700,000 |
| Tasmania - other | $450,000 | $550,000 |
| Australian Capital Territory | $750,000 | $1,000,000 |
| Northern Territory | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
The Regional First Home Buyer Guarantee 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 Regional First Home Buyer Guarantee, 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 the Regional First Home Buyer Guarantee
There are clear and compelling benefits to using the Regional FHB Guarantee, 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 Regional First Home Buyer Guarantee 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 Regional First Home Buyer Guarantee 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 verifying that you’ve lived in a regional or adjacent area for at least 12 months, reviewing your income and deposit savings, 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 Regional First Home Buyer Guarantee, 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 vs First Home Guarantee – What’s the Difference?
You may have heard of the First Home Guarantee (FHBG), and it’s easy to get it confused with the Regional FHBG. While they both offer 5% deposit and no LMI, there are a few key differences:
| Feature | Regional FHBG | First Home Guarantee |
|---|---|---|
| Location | Only for regional areas | Available nationally (metro and regional) |
| Residency | Must have lived in the region or adjacent area for 12+ months | No residency requirement |
| Places available | 10,000 per year | 35,000 per year |
| Deposit required | 5% | 5% |
| LMI waived? | Yes | Yes |
If you’re eligible for both, your location will often determine which one applies. 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.
Regional vs First Home Guarantee – What’s the Difference?
You may have heard of the First Home Guarantee (FHBG), and it’s easy to get it confused with the Regional FHB Guarantee. While they both offer 5% deposit and no LMI, there are a few key differences:
| Feature | Regional FHBG | First Home Guarantee |
|---|---|---|
| Location | Only for regional areas | Available nationally (metro and regional) |
| Residency | Must have lived in the region or adjacent area for 12+ months | No residency requirement |
| Places available | 10,000 per year | 35,000 per year |
| Deposit required | 5% | 5% |
| LMI waived? | Yes | Yes |
If you’re eligible for both, your location will often determine which one applies. 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, joint applications are allowed under the scheme. Only one applicant needs to meet the regional residency requirement.
- Is the scheme available for off-the-plan or new builds?
Absolutely. You can use the guarantee to purchase off-the-plan properties, build on land, or buy a newly built home, provided they fall within the regional property caps.
- What happens if I move out after purchase?
You must live in the home for at least 12 months from the date of settlement. After that, changes in living arrangements may be allowed, but you’ll need to inform your lender and may lose the guarantee benefits.
- Can I use this scheme with the First Home Owner Grant (FHOG)?
Yes, and it’s encouraged. Many buyers use both the Regional FHBG and FHOG together to reduce upfront costs further.
Ready to Buy Your First Regional Home?
If you’re dreaming of your first home in a regional area, the Regional First Home Buyer Guarantee 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.
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 Regional Guarantee.
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.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
