The state government has pledged to add $1.1 billion to the Victorian Homebuyer Fund.
In a statement, the government said the new funding would come on top of the existing $500 million investment in the Equity Equity Scheme which is making home ownership more feasible for many Victorians, including those of Brimbank.
“The fund has so far helped over 2,000 Victorians buy homes with a further 1,000 applicants approved to start house hunting knowing they have a secure funding partner,” the government said.
“Through the share-sharing scheme, eligible participants only need a 5% deposit and the Government of Victoria provides up to 25% of the purchase price of the house, reducing the amount of participants’ mortgage payments and also allows lenders to save on mortgage insurance.
“Participating owners can redeem the government’s share at market value over time, with payments being reinvested to help other aspiring buyers enter the property market. The scheme is open to homes worth less than $950,000 in Melbourne and Geelong, and $600,000 in regional Victoria.
“The new investment will open the door to home ownership for an additional 7,000 people, bringing the total to 10,000.”
The government said more than half of successful owners in the fund are first-time home buyers, who are also eligible for other significant state government grants and stamp duty waivers and concessions.
“To date, the typical member of the Victorian Homebuyer Fund has made an average down payment of $35,000 on a property purchase price of around $650,000, with the Fund contributing $155,000 in share capital”, the government said.
“The Victorian Homebuyer Fund was launched in October last year, and Victoria is working in cooperation with the Commonwealth Government as it prepares its Help To Buy shared capital scheme, which will add to the choices available to families and people.”
The government said the expansion of the fund would be aided by Indigenous Business Australia to support more Aboriginal and Torres Strait Islander participants in the scheme.
Victoria Treasurer Tim Pallas said the fund had been popular because it helped people get into their homes faster with the help of a secure partner.
“Thousands more Victorians will now be able to achieve their dreams with this new injection. Combined with the first owner subsidy and the stamp duty exemption for the first buyer, this can make a huge difference,” he said.