What is the Victorian Homebuyer Fund?

The Victorian Homebuyer Fund is a shared equity scheme in which the Victorian Government makes a financial contribution to the home you’re buying in exchange for a share in the property.

If you have a five percent deposit, the Victorian Government will contribute up to 25% of the purchase price for eligible participants.

If you’re an eligible Aboriginal and Torres Strait Islander participant and have a 3.5% deposit, the Victorian Government will contribute up to 35% of the purchase price.

Participants must buy back (repay) the Victorian Government’s share in property over time through refinancing, using your accumulated savings, or upon selling the property.

Why this is great news for you

If you want to buy a property today you typically need to save at least 20% of the property’s value in order to secure a home loan and avoid paying Lenders Mortgage Insurance (LMI) or Low Deposit Premium (LDP) or to avoid relying on a guarantor.

Under the Victorian Homebuyer Fund you’ll only need to contribute at least five percent (or 3.5% for Aboriginal and Torres Strait Islander participants) of the purchase price towards the deposit. The Victorian Government then makes a financial contribution in exchange for a share in the property. This will save you money by reducing your mortgage and removing the need for LMI.

Are you eligible for the Victorian Homebuyer Fund?

The following conditions will generally apply. You’ll need to:

• Be an Australian or New Zealand citizen, or permanent Australian resident.
• Be at least 18 years old at the time of settlement.
• Have saved the required minimum deposit of at least five percent (or 3.5% for Aboriginal and Torres Strait Islander participants) of your property purchase price.
• Earn a gross annual income of $130,485 or less per annum for individuals, or $208,775 or less per annum for joint applicants (up to four applicants can apply).
• Live in the purchased property as your principal place of residence.
• Not currently own interest in any land in Australia or overseas.
• Your maximum property purchase price is subject to the suburb in which your new property is located. The maximum purchase price must be $950,000 or less in metropolitan, and $600,000 or less in regional locations.