Victorian Homebuyer Fund (VHF)

Introduction

The Victorian Homebuyer Fund (VHF) is an initiative by the Victorian Government, designed to facilitate home ownership for thousands of Victorians. This shared equity scheme aims to make the dream of owning a home more achievable and financially manageable.

What is the Victorian Homebuyer Fund?

The VHF is a shared equity scheme, providing a unique opportunity for potential homeowners. As one of many grants and incentives for Geelong homebuyers, it allows participants to purchase a property with a smaller deposit by partnering with the government.

• Shared Equity Contribution: The government can contribute up to 25% of the purchase price.
• Reduced Financial Burden: Participants benefit from a lower mortgage and the elimination of Lenders Mortgage Insurance.
• Repayment Flexibility: The government’s share is repaid over time, either through refinancing, savings, or upon the sale of the property.

Unlike the First Home Owner’s Grant, which is a lump sum cash incentive for homebuyers, the VHF provides the Victorian Government with an equivalent share in the property. (In other words, the Victorian Government will receive part-ownership of your property in the form of equity.)

Eligibility Criteria

To access the VHF, applicants must meet specific criteria:

• Citizenship: Must be an Australian or New Zealand citizen, or a permanent Australian resident.
• Age: At least 18 years old at the time of settlement.
• Deposit: A minimum deposit of 5%, or 3.5% for Aboriginal and Torres Strait Islander participants.
• Income Limits: $130,485 or less per annum for individuals, $208,775 or less for joint applicants.
• Residency: The purchased property must be the principal place of residence.
• Property Ownership: Applicants should not own any other property at the time of purchase.

Property Eligibility and Price Caps

The VHF applies to standard residential properties across Victoria:

• Property Types: Eligible properties include houses, townhouses, units, or apartments.
• Price Caps: $950,000 or less in Metropolitan Melbourne and Geelong, $600,000 or less in regional Victoria.
• Occupancy Requirement: Properties must be vacant at purchase or have a lease expiring within 12 months.

Applying for the Victorian Homebuyer Fund

Prospective buyers can apply for the VHF through participating lenders. The application process involves:

• Eligibility Check: Confirming your eligibility for the fund.
• Documentation: Gathering necessary documents for a home loan application.
• Lender Consultation: Discussing your options with a participating lender.

Conclusion

The Victorian Homebuyer Fund offers an innovative path to home ownership, especially for those who might find the property market challenging to enter. By understanding the nuances of this scheme, eligible Victorians can take a significant step towards owning their dream home.