New Regional Home Guarantee
The Regional Home Guarantee Scheme is part of an expansion of the government’s broader New Home Guarantee Scheme, and will offer participating, eligible homebuyers in rural and regional areas the opportunity to build or purchase a newly-built home with a deposit as low as 5%. Usually homebuyers with a deposit of less than 20% face additional hurdles to getting into the property market, including in many cases needing to pay for expensive lenders mortgage insurance (LMI).
10,000 guarantees each year from 1 October 2022 to 30 June 2025 under a new Regional Home Guarantee, to support eligible homebuyers, including non-first home buyers and permanent residents, to purchase or construct a new home in regional areas, subject to the passage of enabling legislation, set to support home buyers (including non-first) and permanent residents to purchase or construct a new home in regional areas.
Mr Wolfe said extending the scheme to people who have previously owned a home will support the “missing middle” home seekers – those who have been out of the market, most likely renting, for more than five years in regional Australia.
“Many people each year can find themselves back in the rental market after selling their home. The reasons vary but once in the rental market, saving a deposit to buy a new home can be just as big a hurdle as it is for first home buyers,” Mr Wolfe said.
“Until now, there has been nothing available to help these people re-enter the housing market. The introduction of the Regional Home Guarantee has the potential to help these home buyers but also to boost home building in the regions. Many people have chosen to move to regional areas over the last two years to build a new life, placing pressure on housing affordability in these areas. Supporting home building at the same time as supporting people re-enter the housing market can make a real difference.”
Who is eligible for the Regional Home Guarantee scheme?
Places in the RHG scheme will be available to a broad cross-section of people in regional areas of Australia including:
- Australian citizens or
- permanent residents who are either first home buyers or have not owned a property within the last five years.
In order to access it, applicants will need to either build or purchase a newly-built home in a regional area.
There are reports that the government is hoping to encourage migrants to settle in rural areas by opening the scheme to permanent Australian residents, unlike the other schemes which are restricted to Australian citizens.
10,000 places per year will be available for both first-home buyers and previous homeowners in regional Australia, under the new Regional Home Guarantee. Both citizens and permanent residents will be eligible for the scheme limited to new homes, as long as they have not owned a property in the previous five years.
Sourced from – https://www.mortgagebusiness.com.au/breaking-news/16630-regional-home-guarantee-set-to-make-a-real-difference & https://www.canstar.com.au/home-loans/regional-home-guarantee/
