The Andrews Labor Government is making it fairer and easier for hundreds of Victorians to buy their first home.
Today marks the launch of HomesVic – a ground-breaking shared equity scheme that will help up to 400 eligible first home buyers by reducing the amount of money they need to purchase their own home.
Under the scheme, first home buyers who meet the eligibility criteria will only need a five per cent deposit, and the Government to take a proportional beneficial interest of up to 25 per cent in the property.
When the properties are sold, participating buyers will pay off the proportional beneficial interest, which the Government will reinvest in other homes.
A broad range of metropolitan and regional areas are included in the scheme – including 85 Melbourne suburbs, 130 regional towns and suburbs, and seven peri-urban towns.
The pilot scheme is backed by a $50 million fund and will be targeted at first home buyers on low to moderate incomes.
The initiative is a key part of the Labor Government’s Homes for Victorians package, which includes significant stamp duty reductions for first home buyers and changes to the First Home Owner Grant to make it easier to buy a home in regional Victoria.
The Labor Government has also abolished stamp duty for first home buyers purchasing new and existing homes up to $600,000, and provided discounted stamp duty up to $750,000.
In the six-months to 31 December 2017, more than 9,700 first home buyers across Victoria paid no stamp duty, while another 2,000 paid reduced stamp duty – representing a saving of $212 million for first home buyers.
Applications will officially open at 9:00am on Monday, 19 February. For more information, visit homesvic.vic.gov.au.
Quotes attributable to Treasurer Tim Pallas
“HomesVic will help hundreds of Victorians who wouldn’t otherwise be able to buy their first home.”
“The scheme is already attracting significant interest from first home buyers eager to get the start they need to enter the property market.”
“It’s part of our comprehensive Homes for Victorians package, which is making things fairer for first home buyers across the state.”
Reviewed 19 August 2020