The Victorian Government has launched a pilot shared equity scheme to help low-to-medium income Victorians buy their first home.
The new HomesVic scheme will assist up to 400 first-home buyers meet the criteria to be eligible to enter the housing market by reducing the amount they need to snare a property.
The pilot scheme launched last month and will mean the State will take a proportional interest of up to 25 per cent of the property that is bought by the first-home buyers.
The scheme is targeted at singles earning up to $75,000 a year and families on up to $95,000 a year.
Buyers will need a deposit of just 5 per cent for the homes that are in ‘priority areas’ including 130 towns and suburbs that are in and around key regional centres and seven peri-urban towns.
The scheme works by buyers paying the proportional interest when the property is sold. The Government will reinvest this in other homes.
“This pilot scheme will make it easier for first-home buyers to get their foot in the door as well as reduce the size of the loan they’ll need to service,” Victorian Treasurer Tim Pallas said.
“Not only do first-home buyers deserve a chance to enter the market, but they also deserve more choice about where they live.”