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First launched in October 2021, the Victorian Homebuyer Fund shared equity scheme was designed to assist Victorians in entering the property market by providing eligible home buyers up to 25 per cent of the purchase price (if they have a deposit of 5 per cent) in exchange for an equal share in the property.
Participants of the scheme have the option to buy back the government’s share in the property over a period of time through savings, refinancing, or upon sale of the property.
The Commonwealth Bank of Australia (CBA) executive general manager, home buying, Michael Baumann, said the bank understands it’s a challenging time to save for a deposit, which is why CBA is supporting the scheme.
The major bank will be accepting applications and discussions for eligibility effective immediately.
“At CBA, we help more Australians buy their first home than any other bank and we’re so pleased to be able to help even more home buyers into the market by utilising the Victorian Homebuyer Fund,” Mr Baumann stated.
“We want to support buyers right across the country, and the Victorian Homebuyer Fund is yet another way we can help Australians navigate the current environment to secure a home and invest in their future.”
Victorian government boosts the fund
The Victorian government recently announced plans (October 2022) to “super-size” the Victorian Homebuyer Fund by injecting a further $1.1 billion into the scheme on top of the existing investment of $500 million.
The state government’s intent was to make “home ownership more achievable for many Victorians”.
Reportedly, the fund has assisted around 2,000 Victorians to buy a home, with an additional 1,000 applicants approved for house-hunting. The $1.1 billion investment is set to further help another 7,000 Victorians.
The home buyer scheme is open to homes valued below $950,000 in Melbourne and Geelong and $600,000 in regional areas across the state.
The government stated at the time of the announcement that more than half of the scheme’s successful home owners are first home buyers, who are also eligible for other significant Labor government grants, stamp duty exemptions, and concessions.
Victorian Treasurer Tim Pallas commented: “The Victorian Homebuyer Fund has been popular for a reason — it helps people get into their own homes quicker with help from a secure partner.
“Thousands more Victorians will now be able to realise their dreams with this new injection. Combined with the First Home Owner Grant and first home buyer stamp duty relief, it can make a massive difference.”
[RELATED: $1.1bn boost: Vic Homebuyer fund ‘supersized’]