The Real Estate Institute of Australia (REIA), Property Council of Australia (PCA) and NAB are among the groups that have welcomed the scheme, which came into effect on Saturday, 1 October 2022.
Applauded for its introduction at a time when regional Australia battles with surging house prices, the Regional First Home Buyer Guarantee (RFHBG) program offers 10,000 places to Australians who have resided in their regional location for over 12 months, which successful applicants accommodated a 5 per cent deposit and not required to pay lenders mortgage insurance (LMI).
REIA president Hayden Groves relayed how the timing of the scheme’s beginning was pertinent, as the institute’s latest Real Estate Market Facts report found that many of Australia’s regional hubs experienced exuberant price hikes in the year preceding June 2022.
He believes the scheme will offer some relief to first home buyers in Australia’s regions, especially considering supply scarcity and rising interest rates have constructed tough buying conditions in these locations.
Mr Groves’ welcoming sentiments were shared by NAB, with the big four stating it was “looking forward to helping even more Australians buy their very own home”.
Andy Kerr, NAB executive of home ownership, anticipates the program will receive strong demand for places, adding that the scheme will be crucial in making the “green change” trend birthed by the pandemic “a more permanent one for many”.
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By Kyle Robbins
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