THE Victorian Government's pilot shared equity scheme – HomesVic – has opened for applications, providing the opportunity for up to 400 eligible first home buyers to reduce the amount of money they need to purchase their own home.
Under the scheme, first home buyers who meet the eligibility criteria will only need a five per cent deposit, with the government to take a proportional beneficial interest of up to 25 per cent in the property.
When the properties are sold, participating buyers will pay off the proportional beneficial interest, which the government will reinvest in other homes.
A broad range of metropolitan and regional areas are included in the scheme – including 85 Melbourne suburbs, 130 regional towns and suburbs, and seven peri-urban towns.
The pilot scheme is backed by a $50 million fund and will be targeted at first home buyers on low to moderate incomes.
HomesVic is part of the State Government's Homes for Victorians package, which was launched last year to provide a coordinated approach across government and across the state to support first home buyers, private renters and social housing organisations.