Victorians, did you know there is a new home buyer fund?
The Victorian government has introduced the $500 million Victorian Homebuyer Fund (VHF), which is expected to support more than 3,000 home buyers.
Eligible participants will only require a minimum deposit of 5 per cent, while the government will provide up to 25 per cent of the property purchase price in exchange for an equivalent share in the property.
Currently, the only lender participants currently include Bank Australia and Bendigo Bank.
To be eligible to participate in the fund, home buyers need to:
- Be an Australian citizen or permanent resident over the age of 18 years, who currently do not have an interest in a property and who meet the income thresholds
- Have a gross annual income of $125,000 per annum or less for individuals or $200,000 or less per annum for joint applicants
- Be a natural person (that is, not an organisation, company, trust or other body or entity)
- Occupy the purchased property as their principal place of residence
- Not purchase the property from a vendor who is related
- Not own any interest in any land at the time of purchase (including as trustee of a trust or beneficiary under the trust)
- Not be acting as a trustee of a trust
- Not be a shareholder in any corporation (other than a public company) that owns any land
Under this new scheme, home buyers will no longer be required to be first home buyers. You can also buy in a broader range of locations and have higher household incomes than compared to before.
Property price caps are $950,000 in metropolitan Melbourne and Geelong, and $600,000 in regional Victoria excluding Geelong.
Victorian Treasurer Tim Pallas said that the coronavirus pandemic has heightened financial pressures for home buyers, and highlighted the value of having stable, affordable, secure, and safe housing.
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