The Andrews Labor Government is increasing the size of the popular Victorian Homebuyer Fund from $500 million to $1.1 billion. The new funding will help more than 7,000 Victorians buy a home through the shared equity scheme.
Eligible participants require only a five per cent deposit. The Victorian Government provides up to 25 per cent of the home’s purchase price, reducing mortgage repayments and saving lenders mortgage insurance.
Through this scheme, first-home buyers are also eligible for other significant Andrews Labor Government grants and stamp duty exemptions and concessions.
In this blog post, we’ll take a look at what the doubling of the fund means for first-home buyers in Victoria.
The increase in funding will provide much-needed assistance to Victorians looking to enter the property market. With housing affordability remaining an issue for many Australians, any measure that can help make buying a home more affordable is welcome news.
The doubling of the fund will provide more than 7,000 Victorians access to the shared equity scheme, which requires only a five per cent deposit. The Victorian Government provides up to 25 per cent of the home’s purchase price, reducing mortgage repayments and saving lenders mortgage insurance.
Victorian Homebuyers Fund Eligibility
To be eligible, there are a few boxes you need to tick, and you must:
- be an Australian citizen or permanent resident, at least 18 years old
- be able to pay for all costs associated with purchasing your homes such as conveyancing, legal costs, building inspections and stamp duty (if applicable).
- be able to demonstrate your ability to save over time, with a minimum deposit of 5% for general applicants or 3.5% for Aboriginal or Torres Strait Islander applicants
- be able to confirm that you will be the registered owner of the property and grant the scheme mortgage on the acquisition date
- meet income requirements(single buyers up to $128,000, or household* up to $204,800 per year)(*up to four participants may apply)
- meet property and location eligibility requirements
Eligible Locations and Property Types for the Victorian Homebuyers Fund
The property you purchase must be in Metropolitan Melbourne, Geelong or another eligible regional location.
The property must be a standard residential property such as a house, townhouse, unit or apartment (vacant land is not eligible). The maximum purchase price must be $950,000 or less in Metropolitan Melbourne and Geelong or $600,000 or less in other eligible regional locations.
The purchase can be for an existing or new property, provided that a certificate of occupancy has been issued before the date of the contract of sale. This means off-the-plan property purchases are not eligible.
The property must also be vacant when purchased or, if under a lease, the lease must expire within 12 months of the acquisition date. If any tenants are present at the time of purchase, they must vacate the property within 12 months.
How do you apply for the Victorian Homebuyers Fund
The Victorian Homebuyer Fund is available to eligible applicants who want to purchase a property in an eligible location.
Before applying for the Homebuyer Fund, you should check your eligibility and the list of eligible locations. You can use our eligibility tool to check your eligibility.
To apply for the Homebuyer Fund, you will need to gather the required documentation, such as payslips, bank statements and tax returns. You can speak to a participating lender about how to apply for a home loan.
First-home buyers who take advantage of the increased funding will also be eligible for other significant Andrews Labor Government grants and stamp duty exemptions and concessions.
These measures will go a long way towards helping first-home buyers realise their dream of property ownership.
Fixed-Fee Conveyancing For Victorian First-Home Buyers
If you’re thinking of buying your first home, be sure to get in touch with Tick Box Conveyancing to find out how we can help make your dream a reality. We offer a fixed-fee conveyancing service that takes care of all the legal aspects of buying a property, including comprehensive contract reviews, so you can focus on finding your perfect home.
We are offering a fixed-fee service to all first-home buyers in Victoria.
Tick Box Conveyancing is making a limited-time offer to real estate agents. Your clients can access a locked-in price for all purchases or sales of existing residential properties for just $1210, inclusive of GST, plus disbursements!
The doubling of the Victorian Homebuyers Fund is great news for those who are looking to enter the property market. With housing affordability remaining an issue for many Australians, any measure that can help make buying a home more affordable is welcome news.
If you’re thinking of buying your first home, be sure to get in touch with Tick Box Conveyancing to find out how we can help make your dream a reality.