The new HomeBuyer Fund was announced by the Victorian Government on the 8th October 2021. Premier Dan Andrews revealed a $500 million scheme that’s expected to support more than 3,000 Victorians becoming home owners.
This welcoming news is to improve housing affordability and to attempt further stability. Premier Dan Andrew also mentioned, “The pandemic has heightened financial pressures for Victorians and highlighted the value of having a secure, safe place to call your own”.
The new HomeBuyer Fund aims to make it easier for more people to buy a home by reducing the amount of money needed to place themselves into the market. This will also potentially reduce the need and commitment of applying for Lenders’ Mortgage Insurance.
Who is eligible for the HomeBuyer Fund in Victoria?
You can further read this criteria at the Office of State Revenue website.
- Be an Australian citizen or permanent resident and be at least 18 years of age at settlement.
- Have saved the required minimum deposit (at least 5% or 3.5% depending on your circumstances) of your property price.
- Earn $125,000 or less per annum for individuals, or $200,000 or less per annum for joint applicants. This refers to your gross annual income.
- Occupy the purchased property as your principal place of residence.
- Be a natural person (that is, not an organisation, company, trust or other body or entity).
- Not purchase your property from a vendor who is a related person.
- Not own an interest in any land at the time of purchase (including as trustee of a trust or beneficiary under a trust).
- Not be acting as trustee of a trust.
- Not be a shareholder in any corporation (other than a public company) that owns any land.
Eligible participants for the HomeBuyer Fund need to meet all of the above eligibility requirements and if subsequent assessments by the State and a participating lender are approved, you must become registered owners of the property.
Under the scheme, home owners can buy out the government’s share at market value over time if they choose. The purchase must be located in metropolitan Melbourne. Click the location map link for details.
If located in metropolitan Melbourne (includes Geelong) the property cannot exceed $950,000 in value, however in regional Victoria it must not exceed $600,000.
How can we help?
At Crest Property Investments we specialise in sourcing brand new and off the plan properties for buyers. We also do not charge fees to buyers! If you’d like to learn more, please feel free to contact us. We welcome the opportunity to help you make the best property decision.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
October 2021
