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