Helping Victorians struggling to buy their first house

The Victorian Government is calling on Victorians struggling to earn and save enough to buy a house to register for a new scheme that will help more people buy their first home, sooner.

First home buyers can express their interest in being a part of HomesVic — a shared equity scheme that will see the Government provide up to 25 per cent of the initial price of a buyer’s first home.

By taking an ownership stake, the Government will help give these first home buyers the start they need – enabling them to enter the market earlier by reducing the amount of money they require for their home loan.

Applications will officially open in February 2018 and the pilot scheme will begin in early 2018 – with an initial allocation of $50 million over two years.

The pilot scheme will initially be available for up to 400 first home buyers who meet the eligibility criteria.

Priority will be given to homes in areas where there is a high demand for housing and good access to employment, public transport and other services.

Selected areas in metropolitan Melbourne and certain commuter towns and regional centres will be announced early in 2018, prior to applications opening.

Eligibility will target applicants with incomes of up to $75,000 for singles, or up to $95,000 for couples or families. Buyers will need to have a 5 per cent deposit.

When the properties are sold, participating buyers will pay the proportional interest, which the Government will reinvest back in the scheme.

HomesVic is part of the Government’s Homes for Victorians package announced earlier in 2017, which also includes significant stamp duty cuts for first homebuyers.

More than three thousand Victorians have benefitted from these changes, which abolish stamp duty for first home buyers on properties valued under $600,000, and provide concessions for houses between $600,000 and $750,000.

It also builds on the Government’s rental fairness package, which gives tenants more rights, helps them stay on longer leases, makes bonds smaller and fairer, and cracks down on dodgy landlords.

Source: Vic Government