While many people can afford to rent a home that meets their needs, saving for a deposit and purchasing an affordable home is increasingly challenging, placing home ownership out of reach for many Victorians.
The Victorian Homebuyer Fund makes getting into home ownership more achievable for many Victorians.
How the scheme works
The Victorian Homebuyer Fund is a shared equity scheme, where the Victorian Government makes a financial contribution to the purchase of a home in exchange for an equity share in the property, which participants can buy back over time.
Through the scheme, the Victorian Government provides eligible participants with a contribution of up to 25 per cent of the purchase price of the home. Participants need to contribute a minimum of 5 per cent of the purchase price and cover any acquisition costs, such as stamp duty and conveyancing costs. The remaining amount is to be secured through a home loan from a partner lender.
Additional supports are available for Aboriginal and Torres Strait Islander participants.
Participants are required to buy back the government’s share in their property over time through refinancing, using accumulated savings, or upon sale of the property. The Victorian Government does not charge interest on its investment in participants’ homes, but shares in any capital gains or losses proportionate to its share in the property.
More information
For the eligibility criteria and more information on buying a home with support from the Victorian Homebuyer Fund, visit vic.gov.au/homebuyer.