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The Andrews government has announced a major funding increase to the Victorian Homebuyer Fund, set to triple the size of support.
Having already helped approximately 2,000 Victorians — predominately first home buyers — purchase a property since its inception in October 2021, the Victorian Homebuyer Fund will receive an increased investment of $1.1 billion.
Under the shared equity scheme, eligible participants can purchase a home with only a 5 per cent deposit. The Victorian government will provide up to 25 per cent of the purchase price of the home, subsequently reducing the financial burden of mortgage repayments and saving on mortgage lenders insurance.
Additionally, home owners are able to buy out the government’s share at market value over time, with payments reinvested into assisting other aspirational home buyers.
Homes valued under $950,000 in Melbourne and Geelong and $600,000 in regional Victoria are eligible for the scheme, which State Treasurer Tim Pallas believes will benefit thousands of Victorians.
“Combined with the First Home Owner Grant and first home buyers stamp duty relief, it can make a massive difference,” he added.
More than 230 participants in the fund are based in regional Victoria, including Krista and Ken Navarro, who purchased their $595,000 home in Ballarat using a 5 per cent deposit while reaping the benefits of a Homebuyer Fund equity contribution valued at $148,750.
Ms Navarro commended the fund for helping find a “fantastic family home” that’s ideal for her young twins without demolishing the couple’s savings. In addition to the equity contribution, the couple avoided mortgage lenders insurance and qualified for a $30,000 stamp duty exemption.
Similarly, Melbourne couple Harley Bougoure-Latchford and Samruai Raikuea recently settled their $901,000 home in Skye, the Victorian capital’s south-east, with the assistance of the fund.
“It was our first home that we purchased — without the scheme, it wouldn’t have been possible for us. It was just fantastic to be approved,” Mr Bougoure-Latchford said.
The pair contributed a 9.5 per cent deposit to the purchase but received a $225,250 contribution from the Labor government while avoiding mortgage lenders insurance, which saved them a further $28,000.
The fund sees the Victorian government follow in the footsteps of its Queensland counterparts after the Palaszczuk government last week announced a $1 billion commitment to its own Housing Investment Fund (HIF).
Additionally, the Andrews government announced co-operation with the federal government in the build-up to the implementation of the Help to Buy scheme next year.
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