Over the past year, the Australian property market has gone, well, pretty much through the roof. Prices in Melbourne’s inner suburbs have skyrocketed in recent months, while the cost of property in regional Victoria experienced a significant jump too, as more Melburnians leave the city in search of the country life.
For homebuyers saving for a deposit, this leap in cost is pretty grim, and can feel like the dream of one day owning your own home will stay just that.
Cue the twinkly music, because your home-owning dreams may be about to come true. Help for Victorian homebuyers is at hand, thanks to the State Government’s recently announced $500 million Victorian Homebuyer Fund.
What is it?
The Victorian Homebuyer Fund is helping eligible homeowners buy their own homes faster by reducing the time needed to save for a deposit. Rather than coming up with a 10% (or 20%) deposit for a new home, the Fund allows buyers to start with a 5% deposit*, then the Victorian Government will support with an initial 25%, in exchange for an equivalent share in the property.
So if you find your dream home for $500,000, you’ll need a $25,000 deposit, the government will throw in $125,000, and then you’ll need approval on a bank loan of $350,000, provided through a participating lender like Bank Australia, to cover the rest. Nice.
Aboriginal and Torres Strait Islander homebuyers are eligible to start with a deposit of 3.5% and receive government support up to 35% in exchange for an equivalent share in the property. And participants who receive funding through the Victorian Homebuyer Fund don’t have to pay Lender’s Mortgage Insurance (LMI) either, which is another nice little saving.
Is it for me?
Are you an Australian citizen or permanent resident, aged over 18? Don’t currently own your own home? Earn less than $128,000 pa or less than $204,800 if you’re a couple or household? Looking to buy new digs in Melbourne or Geelong for under $950,000, or regional Victoria for under $600,000?
If you answered ‘yes’ to all of the above, then congrats – the Homebuyers Fund might just be for you. (Check out the full list of eligibility requirements here.)
Participants can stay in the scheme for up to 30 years after they’ve moved into their property.
How do I access it?
As with most financial investments, you’ll need to provide a bunch of documents – such as identity documents, bank statements and payslips – at the provisional approval stage.
Talk to us about the Victorian Homebuyer Fund now.
Things you need to know
*Stamp duty and other costs payable. Terms and conditions, eligibility and lending criteria apply. Restrictions and obligations imposed after purchase.
Loan applications are subject to Bank Australia credit assessments and approvals. Terms and conditions applicable to your home loan will be included in your loan documentation from Bank Australia.