HomesVic launched, applications open Monday 19th of February

The State Government has today launched its HomesVic scheme which was foreshadowed back in March 2017 and is designed to make it easier for those eligible to buy their first home with a 5% deposit.

The pilot scheme will see the state government taking a proportional beneficial interest of up to 25 percent in eligible applicant's properties.  The pilot is being financed with a $50 million fund announced last year.

While the scheme has been launched today, applications for the scheme open at 9am on Monday 19th February.

HomesVic will take a proportional beneficial interest of up to 25% in the property, and 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 contribute at least 5% of the acquisition price from genuine savings and be able to cover all acquisition costs in addition to that contribution to the acquisition price.

HomesVic

As the scheme is a pilot, there are only 400 places and first home buyers are encouraged to apply as quickly as they can once the applications option.

According to a state government media release, the areas where the pilot will be available include 85 Melbourne suburbs, 130 regional towns and suburbs and 7 peri-urban towns. 

The scheme will only apply in the priority areas and in certain dwelling typologies - for instance, in Box Hill, the scheme will not apply to houses but will apply to townhouses and apartments.

Eligible candidates for the pilot will need to submit to an annual review of their circumstances and the eligibility criteria are somewhat robust, examples include:

• Applicants must be Australian citizens or permanent resident status and have been residing in Victoria for the past two years.
• Entities (companies, trusts or other bodies) are not eligible - you must be a 'natural person' and must not be related to or associated with the vendor of the property being purchased.
• Applicants must not be earning more than $75,000 per annum (for singles) or more than $95,000 where there are multiple incomes combined.
• You must not have owned property in whole or in part prior to applying for the pilot (legally or beneficially).
• The property can be existing or off the plan and must be a standard residential property (apartment, townhouse or house) and located in a designated area.
• Prospective buyers must seek loan approval from a panel financial institution (Bank Australia and Bendigo Bank for the pilot) before the government will begin to assess the pilot.
• Buyers must have a new (no refinance) principle and interest loan, maximum duration is set at 30 years and the home loan can be a variable or fixed-rate.
• The home loan must have either an offset account or a redraw facility and the amount of the principle and interest loan payments at the commencement of the home loan cannot exceed 37% of the total taxable income of the applicant(s).

For more information & eligibility criteria, visit www.homesvic.vic.gov.au