The state government has committed to add $1.1 billion to the Victorian Homebuyer Fund.
In a statement, the government said the new funding will add to the $500 million existing investment in the shared equity scheme that makes home ownership more achievable by many Victorians, including those in Sunbury and the Macedon Ranges.
“So far, the fund has helped more than 2000 Victorians buy a home with an additional 1000 applicants approved to start house-hunting knowing they have a secure funding partner,” the government said.
“Through the shared equity scheme, eligible participants require only a five per cent deposit and the Victorian Government provides up to 25 per cent of the purchase price of the home – reducing the size of participants’ mortgage repayments and also saving lenders mortgage insurance.
“Participating homeowners can buy out the government’s share at market value over time, with payments reinvested to help other aspiring homebuyers get into the property market. The scheme is open to homes valued below $950,000 in Melbourne and Geelong, and $600,000 in regional Victoria.
“The new investment will open the door to home ownership to a further 7000 people, taking the total to 10,000.”
The government said more than half of the fund’s successful homeowners are first home buyers, who are also eligible for other significant state government grants and stamp duty exemptions and concessions.
“The typical Victorian Homebuyer Fund member to date has paid an average deposit of $35,000 on a property purchase price of around $650,000, with the Fund contributing shared equity of $155,000,” the government said.
“The Victorian Homebuyer Fund was launched in October last year, and Victoria is working co-operatively with the Commonwealth Government as it prepares its Help To Buy shared-equity scheme, which will add to the choices available to families and individuals.”
The government said the extension of the fund will be aided by Indigenous Business Australia to support more Aboriginal and Torres Strait Islander participants into the scheme.
Victorian Treasurer Tim Pallas said the fund had been popular because it helped people get into their own homes faster with help from a secure partner.
“Thousands more Victorians will now be able to realise their dreams with this new injection. Combined with the First Home Owner Grant and first home buyer stamp duty relief, it can make a massive difference,” he said.
Details: sro.vic.gov.au/homebuyer.
