The Victorian Homebuyer Fund may allow home buyers to receive up to a 25% equity contribution from the Victorian Government, with a just 5% deposit.
Dan Andrews explains:
“Most first home buyers can’t just rely on the bank of Mum and Dad for help. And if you’re a young buyer without a giant income, affording a home can feel impossible. Because as house prices soar, so does the amount of money you need saved up for a deposit. And inevitably, big things like starting a family, getting married, or changing jobs get put off. Which is why we’re doing this – to get more people into their own home sooner;
The Victorian Homebuyer Fund will allow home buyers to receive up to a 25% equity contribution from the Victorian Government, with a just 5% deposit. That means, we will cover the remainder of your deposit, so you can buy a home sooner with a smaller amount. Buyers will avoid the cost of Lenders Mortgage Insurance, and won’t have to pay interest on the Government’s contribution either.
It’s open to people over 18 who don’t currently own a property – and it’ll mean those with a secure income can purchase a family home they couldn’t afford a deposit for before.
Everyone knows property prices have risen sharply – but it’s the deposit which is often the biggest hurdle. Hopefully this makes that a little bit easier, and gets young Victorian’s into their own homes sooner. Because there’s no place like home – and every Victorian deserves a place of their own.”
(Source: Dan Andrews Facebook)
If you’re struggling to save for a home deposit, the Victorian Homebuyer Fund could be the key to owning your home sooner.
If you have a 5% deposit, the Victorian Government may contribute up to 25% of the purchase price, in exchange for an equivalent share in the property, which can reduce your mortgage. Plus, no Lenders Mortgage Insurance.
Once you pay the government back for their contribution, they will no longer own a share in the property.
If you are first home buyer purchasing a house for $600,000 or less, stamp duty may be removed. If you decide to purchase a home between $600,000 and $750,000, stamp duty can be reduced. If you are buying a home in regional Victoria (valued up to $750,000), you may be eligible for the First Home Owner Grant too.
Hopefully, Victoria’s New First Home Buyer Scheme, stamp duty reductions and the possibility of a First Home Owner Grant allows anyone looking to buy into the market for the first time, a fighting chance. If you have any questions or would like to start searching for a property today – contact us any time (03) 5561 2777.
Information provided by The Victorian Government. All subject to approval.
www.vic.gov.au 14/10/2021
Click here to find out more.