First Home Guarantee vs Regional Guide

First Home Guarantee vs Regional Guarantee: The 5% Deposit Comparison

Saving a full 20% property deposit while paying rent in a high-inflation market is a formidable hurdle for first-home buyers. To accelerate homeownership, the Australian Federal Government, through Housing Australia, operates two parallel deposit support initiatives under the Home Guarantee Scheme: the First Home Guarantee (FHBG) and the Regional First Home Buyer Guarantee (RFHBG). Both schemes enable buyers to purchase with just a 5% cash deposit without paying Lenders Mortgage Insurance, but their geographical boundaries and residency rules differ.

The Core Shared Benefits: 5% Deposit and $0 LMI

Both guarantee programs share the same core financial mechanism:

• Buyers contribute a minimum cash deposit of just 5% of the property's purchase price.
• Housing Australia guarantees up to 15% of the loan value directly to participating commercial mortgage lenders.
• Lenders Mortgage Insurance (LMI) is completely waived, saving the borrower between $15,000 and $35,000 in non-refundable bank insurance fees.
• Loans are issued at standard, competitive commercial interest rates.

Key Difference: Metropolitan vs Regional Geographic Boundaries

The primary distinction between the two guarantees lies in geographic zoning and applicant residency history:

• First Home Guarantee (FHBG): Open nationwide across all Australian capital cities, suburban growth corridors, and regional centres. Applicants can purchase anywhere in Australia, with zero requirement to have lived in that specific region previously.
• Regional First Home Buyer Guarantee (RFHBG): Restricted exclusively to designated regional areas (outside major capital cities). Furthermore, applicants must have lived in that regional area (or adjacent regional area) for at least 12 continuous months immediately prior to executing the property contract.

Income Limits and Property Price Caps in Queensland

Both guarantees enforce identical federal income benchmarks:

• Singles: Maximum taxable income of $125,000 per annum for the previous financial year.
• Couples: Maximum combined taxable income of $200,000 per annum.
• Eligible Properties: Brand-new off-the-plan apartments, newly built townhouses, house and land packages, and established dwellings up to $700,000 in major QLD centres.

Stack your 5% guarantee with Queensland's $30,000 grant and zero stamp duty concessions. Explore Broadbeach residences or explore Surfers Paradise residences with BARTA Property specialists.

Securing Your Spot with an Approved Lender

Places are allocated on a first-come, first-served basis through participating major and non-major lenders each financial year. Model your borrowing power and investment structures using BARTA Property finance tools.