The Victorian Government has moved to try and help property buyers who are struggling to get enough together for a deposit.
It’s part of a range of measures introduced this week by the Government to combat housing affordability.
The $50 million HomesVic project will be for Victorian couples earning less than $95,000 and singles earning less than $75,000 who can service a home loan but are struggling to save the deposit.
Buyers under the scheme will only need to pay a 5 per cent deposit on either an existing or new home and the Government will pay the rest.
The State Government will then take an equity share of up to 25 per cent of the property and will get that back when the property is sold.
Treasurer Tim Pallas told The New Daily the scheme would reduce both deposit and loan repayment costs.
“This pilot scheme will make it easier for first-home buyers to get their foot in the door, as well as reducing the size of the loan they’ll need to service,” he said.
“Not only do first-home buyers deserve a chance to enter the market, but they also deserve more choice about where they live.”
The Government will also contribute $5 million to a shared equity scheme to help low to medium income families get a foot in the property door.
The scheme will begin in January next year and the Government will co-purchase around 400 homes.