The Victorian Government has launched a $500 million shared equity fund to help Victorians buy their own home.
The Victorian Homebuyer Fund will make it easier for more people to buy a home by cutting the amount of money eligible buyers will need to enter the market.
It will also mean homebuyers do not have to pay costly mortgage insurance.
Eligible buyers will only need a five per cent deposit for a home and the State Government will chip in up to 25 per cent of the purchase price for an equivalent share in the home.
Treasurer Tim Pallas said the fund would help thousands of Victorians buy a home.
“It can take years to save for a deposit . Through our Victorian Homebuyer Fund, more than 3000 Victorians are expected to enter their own home sooner,” he said.
“The pandemic has underscored the value of a secure, safe home to call your own – that’s what this program will provide for thousands of Victorians.
“This will make it easier to secure your own home and we’re proud to play our part in helping Victorians realise this dream – because there’s no place like home and we want every Victorian to know that feeling.”
The fund is an extension of the $50 million HomesVic Shared Equity Initiative, which was a pilot program that enabled more than 300 buyers to secure their first home.
Unlike that program, the new fund will have wider eligibility criteria, including no longer needing to be a first-home buyer.
To qualify for the fund, applicants must be an Australian citizen or resident over 18 who doesn’t currently have an interest in any property.
Single applicants need to earn $125,000 or less per year, while joint applicants must earn $200,000 or less per year.
Participants only need a five per cent deposit for the government to provide up to 25 per cent of the purchase price.
Aboriginal and Torres Strait Islander homebuyers can buy with a deposit as low as 3.5 per cent and the government will chip in up to 35 per cent for an equivalent share in the property.
Homeowners can later choose to buy out the government’s share of the property at market value, with funds reinvested to help other homebuyers enter the market.
Applicants can purchase anywhere in Metropolitan Melbourne and a range of regional cities and towns, which you can view here.
Property bought in Melbourne and Geelong cannot exceed $950,000 in value, while the price of homes in regional Victoria is capped at $600,000.
Other eligibility criteria include that you must live in the property, take out building insurance, undertake annual reviews and maintain the home.
For more information visit www.sro.vic.gov.au/homebuyer