The Victorian Government has launched its shared equity scheme, which aims to accelerate the path to homeownership for eligible buyers.

To be eligible to apply, you need a 5% deposit and then the Victorian Government will contribute up to 25% of the purchase price in exchange for an equivalent share in the property, whilst also removing the need for Lenders Mortgage Insurance.

Questions? Yes, we had some too! Read on to find out more.

What are the criteria?

• Eligible location
• Financial Contribution: 5% deposit, 25% Victorian Government, 70% bank
• Must be an owner-occupier
• Income of no more than $125,000 for an individual or $200,000 for joint applicants
• Must be 18 or older

Which banks are involved?

Bank Australia and Bendigo Bank are the current participating lenders delivering the Homebuyer Fund. Once you have checked your eligibility, you should get in touch with your chosen participating lender to conduct standard loan assessments and evaluate if you are able to service a mortgage. It is important to understand that while you may be eligible for the Homebuyer Fund, you may not necessarily be eligible for a loan with a lender.

Can my deposit be more than 5%?

Yes. The required minimum deposit for most applicants is 5%

Can I still receive the First Home Owner Grant (FHOG)?

Yes. The Homebuyer Fund does not impact your eligibility for the First Home Owner Grant (FHOG). If you are eligible for the FHOG, you will be able to apply in the usual way.

Can I buy a property above my indicative maximum purchase price?

Before making an offer on a property, you should contact your chosen lender to seek an increase of your pre-approved loan. If approved, your lender will submit a new application on your behalf, which may result in a new provisional approval with a different shared equity contribution and indicative maximum purchase price.

I’ve been granted provisional approval. What happens next?

You will receive a letter detailing your indicative maximum purchase price (based on your deposit and in-principle loan approval amount) and the maximum financial contribution you may be eligible to receive from the Government, pending the satisfaction of certain conditions.

You will have six months to enter into a contract of sale for an eligible property.

This is a scheme designed to help both eligible buyers and sellers to achieve their property goals. It is important to understand how this applies to your circumstances and potentially how it impacts the negotiation of the sale of your property. Should you have any questions please don’t hesitate to reach out to our team.

To read more – click on the link here: https://www.sro.vic.gov.au/homebuyer