Homeownership in Victoria, Australia, can seem out of reach for many, with rising property costs and increasing deposit requirements. That’s why the Victorian Government introduced the Victorian Homebuyer Fund – a shared equity scheme designed to bridge the gap and make homeownership more attain
What is the Victorian Homebuyer Fund?
The Victorian Homebuyer Fund provides eligible Victorians with a unique opportunity to purchase a home with a smaller deposit. The government contributes up to 25% of the purchase price in exchange for a proportional share in the property. In essence, they become your co-buyer.
How Does It Work?
- Reduced Deposit Requirement: With the fund, you only need a 5% deposit (3.5% for eligible Aboriginal and Torres Strait Islander participants).
- Shared Equity: The Victorian Government contributes up to 25% (or 35% for eligible Aboriginal and Torres Strait Islander participants) of the purchase price. Also Read: Home Guarantee Scheme: Everything You Need to Know
- No Interest Charged: You won’t be charged interest on the government’s contribution. However, they’ll share in any capital gains or losses when you sell the property. Hacks to Secure the Best Home Loan Rate in Australia (Proven)
- Partner Lenders: You’ll secure the remaining amount through a home loan from a participating lender.
Eligibility Criteria
To qualify for the Victorian Homebuyer Fund, you must:
- Be an Australian or New Zealand citizen or permanent Australian resident.
- Be at least 18 years old.
- Not currently own property in Australia or overseas.
- Purchase the property as your primary residence. Top Tips for Buying Your First Home in Australia: 2024 Guide
- Meet individual or joint income caps ($128,000 annually for individuals, $204,800 for joint applicants).
Eligible Property Types and Price Caps
- Existing or newly built residential properties
- Located in eligible areas (visit www.sro.vic.gov.au/homebuyer-fund-eligible-locations for a full list).
- Property value must not exceed the price caps:
- Metropolitan Melbourne and Geelong: $950,000
- Regional Victoria: $600,000
Benefits of the Victorian Homebuyer Fund
- Smaller Deposit: Achieve homeownership sooner with a reduced deposit requirement.
- No Lenders Mortgage Insurance: Save money by avoiding LMI with a smaller loan amount.
- Government Support: Receive financial support from the government to realize your homeownership goal.
Example
- Purchase Price: $600,000
- Your Deposit (5%): $30,000
- Victorian Government Contribution (25%): $150,000
- Home Loan (70%): $420,000
How to Apply for Victorian Homebuyer Fund
- Check Eligibility: Take the online eligibility test on the Victorian Homebuyer Fund website (vic.gov.au/homebuyer).
- Find a Partner Lender: Contact a participating lender to discuss your home loan options.
- Submit Application: Complete the application process with the support of your lender.
Additional Considerations
- Repaying the Government: You can repay the government’s share over time through refinancing, savings, or upon the sale of the property.
- Partner Lender Criteria: You’ll still need to meet the lender’s standard eligibility criteria. Official Source
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