The newly launched Victorian Homebuyer fund (VHF) is expected to support more than 3,000 Victorians become homeowners in an environment where the Premier, Dan Andrews, said the pandemic has “heightened financial pressures for Victorians and highlighted the value of the value of having a secure, safe place to call your own.”
The VHF aims to make it easier for people to buy a home through a system of shared equity that reduces the amount of money eligible participants need to enter the market.
Under the new scheme, there’s no need to be a first home buyer. The VHF will be available to Australian citizens or permanent residents over the age of 18 years, who don‘t currently have an interest in a property and who meet the income thresholds -which are annual gross incomes of $125,000 or less per annum for individuals, or $200,000 or less per annum for joint applicants.
Eligible participants will be able to purchase in any location in Metropolitan Melbourne, but will also be provided a broad range of regional options.
The value of the property cannot exceed $950,000 in Metropolitan Melbourne and Geelong. The price cap in Regional Victoria (excluding Geelong) is $600,000.
Victorian Homebuyer Fund participants will still eligible for other Victorian Government housing schemes, including the First Home Owner Grant and first home buyer stamp duty concessions or exemptions.
Participants in the scheme will require a 5 per cent deposit, with the government to provide up to 25 per cent of the purchase price, in exchange for an equivalent share in the property.
Aboriginal and Torres Strait Islander homebuyers will be eligible to buy with a deposit as low as 3.5 per cent and receive a government contribution of up to 35 per cent, in exchange for an equivalent share in the property.
VHF homeowners can buy out the Government’s share at market value over time if they choose to with the re-couped funds then reinvested to help other eligible VHF homebuyers.
You can find out more about the scheme here.