WITH the state election only weeks ago, Victorians are set to receive extra support for housing from the Andrews Labor Government after the announcement of an additional $1.1 billion to the Victorian Homebuyer Fund, as well as a new partner to support more Aboriginal and Torres Strait Islander become homeowners.
Ownership has become more achievable for many Victorians already through $500 million of investment in the scheme, which was established last October. More than 2000 Victorian residents have managed to buy a home with help from the fund with that number expected to grow with the extra influx of money.
1000 residents have also been approved to start house-hunting and with the extra money expected to assist up to 7000 more participants, it takes the total up to 10,000 participants to buy a house through this shared equity scheme.
The 2022 Victorian State Election is coming fast, with voting beginning on the 14th of November prior to results on the 26th. Housing and the cost of living are one of the most prevalent issues for Victorians and the ability for the Andrews Government to have a positive effect on this difficult topic will undoubtedly score Dan Andrews some major points. Andrews added new housing and planning ministers to his cabinet in June.
The fund’s increase follows a similar move made by the Palaszczuk Government which has lifted Queensland’s housing fund from $1 billion to $2 billion.
Victorians who find themselves eligible for the fund only need a 5% deposit for a house – the government pays up to a quarter of the home’s purchase price. This significantly makes the mortgage repayments easier for participants while also saving lenders mortgage insurance.
Over 50% of the homeowners to come out of the scheme are first-home buyers. A couple who have benefitted from the scheme are Krista and Ken Navarro who moved into a $595,000 house in Ballarat. They paid a 5% deposit and benefitted from a $148,750 Homebuyer Fund equity contribution. They did not pay lenders mortgage insurance and as first home buyers also qualified for a stamp duty exemption, saving a further $30,000.
“We’ve always been diligent savers but it’s very difficult for families to buy now,” Krista Navarro said.
“The scheme helped us get into a fantastic family home in Ballarat that’s ideal for our young twins, and we didn’t have to completely wipe our savings.”
Treasurer Tim Pallas underlines the impact this scheme is having on thousands of Victorians.
“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,” he said.
The support for first-home buyers in Victoria last financial year reached $1.1 billion. $801 million paid in stamp duty exemptions and concessions to more than 44,000 purchasers, $223 million paid in $10,000 First Home Owner Grants and $150 million contributed in Victorian Homebuyer Fund shared equity.
A new lending partner – Indigenous Business Australia will aid the fund’s extension with a goal to support more Aboriginal and Torres Strait Islander participants within the scheme.
