The $500 million Victorian Homebuyer Fund (Homebuyer Fund) is the Victorian Government’s new shared equity scheme. The scheme will support over 3,000 Victorians to enter their own home. The scheme is administered by the State Revenue Office (SRO).
The Victorian Government contributes up to 25% (up to 35% for Aboriginal and Torres Strait Islander participants) to the purchase of a home in exchange for an equivalent share in the property. The government does not receive interest on its investment but will share in any capital gains or losses proportionate to its interest in the property.
Participants will need to contribute at least 5% of the acquisition price (3.5% for Aboriginal and Torres Strait Islander participants), as well as any acquisition costs, such as stamp duty and conveyance costs. The remaining amount is to be secured through a home loan from a Homebuyer Fund participating lender.
Participants do not have to pay Lenders Mortgage Insurance, providing them with additional savings. Participants pay no interest or fees on the State Government’s contribution.
Participants repay the State’s share over time, payments are proportionate to any capital gains or losses on the property. Aboriginal and Torres Strait Islander Victorians are eligible to receive additional support, such as a 35% Victorian Government contribution and a lower deposit amount of 3.5%.
Eligibility Criteria
• Australian or New Zealand citizens or permanent Australian residents,
• Those aged 18 years of age at the time of starting an application,
• Those earning $125,000 or less per annum for individuals, or $200,000 or less per annum for joint applicants (up to four applicants may apply),
• Those who do not own an interest in another residential or commercial property at the time of purchase,
• Those intending to be owner-occupiers and registered owners of the purchased property.
What, Where, How?
Any standard sales methodology that is accepted within the real estate industry can be used to purchase a home under the Homebuyer Fund. For a property to be eligible it must be a ‘residential property’. Eligible residential properties include:
• an existing house, townhouse, or apartment, or
• newly built properties if the property has a certificate of occupancy (no off-plan developments). The value of the residential property must not exceed the relevant price cap for the area where it is located.
Price Caps
Greater Melbourne and Geelong – $950,000
Regional Victoria – $600,000