LOCAL property buyers will be one step closer to purchasing their own home, thanks to the Victorian Homebuyer Fund (VHF).
Announced last week, the $500M VHF is expected to support more than 3000 Victorians to become homeowners.
The VHF shared equity arrangement reduces the amount of money eligible participants need to enter the property market and relieves Victorian homebuyers from the extra financial burden of Lenders’ Mortgage Insurance.
It is an expansion of the successful $50M HomesVic Shared Equity Initiative, a pilot program that supported more than 335 households to buy their first home, including four in the Greater Shepparton region.
Eligibility criteria under the VHF will be broader than the HomesVic pilot, making shared equity accessible to more Victorians. Under the new scheme, they no longer need to be first home buyers, can buy in a broader range of locations, and can have higher household incomes than compared to the earlier pilot.
“I believe this new scheme is perfect for the first home buyer looking to get their first home. It’s more beneficial for regional buyers than for city buyers, as prices in regional areas are more reasonable and affordable,” said Rocky Gagliardi, principal of Gagliardi Scott Real Estate.
“It gives those buyers who haven’t got parents who have the ability to assist an equal playing field, with probably more clout with the major lenders.”
The VHF is available to Australian citizens or permanent residents over the age of 18 years, who currently don’t have an interest in a property and who meet the income thresholds.
Eligible participants only require a 5 percent deposit and the Government provides up to 25 percent of the purchase price, in exchange for an equivalent share in the property. Further information is available at: vic.gov.au/homebuyer.
