The State Revenue Office is calling on aspiring homeowners to investigate their eligibility for its shared household equity scheme.
Leading the call, Treasurer Tim Pallas said the Office’s Victorian Homebuyer Fund launched last October had approved more than $75 million in shared equity funding, allowing 500 Victorians to settle on their properties.
“The Scheme has the capacity to help up to 3,000 applicants achieve their home-ownership dream,” Mr Pallas said.
“Research shows it takes first home buyers an average of eight years to save a 15 per cent deposit for a typical home in greater Melbourne,” he said.
“The Fund reduces the required deposit for participants to just five per cent and contributes up to 25 per cent towards the purchase price of the property in exchange for an equivalent share in the property.”
Mr Pallas said the higher joint equity also had the added benefit of relieving homebuyers from the costs of obtaining Lenders’ Mortgage Insurance.
The Treasurer said Aboriginal and Torres Strait Islander homebuyers could buy with a deposit as low as 3.5 per cent and receive a Government contribution of up to 35 per cent.
“Homeowners can buy out the Government’s share at market value over time, with payments reinvested to help other aspiring homebuyers get into the property market,” he said.
“The maximum purchase price cannot exceed $950,000 in Melbourne and Geelong, and $600,000 in regional Victoria.”
Mr Pallas said there were 42 eligible regional locations under the Scheme, including Bendigo, Mildura, Shepparton, Ballarat, Daylesford, Warragul, Sale, Gisborne, Portland, Echuca and Bairnsdale.
He said Scheme participants must earn no more than $125,000 for singles or a combined $200,000 for multiple person households.
Further information on the Fund can be accessed at this PS News link.