Applying for the Homebuyer Fund
Eligible homebuyers can receive a contribution of up to 25% towards the purchase price of their property, reducing their minimum required deposit to 5% and avoiding the need to pay Lenders Mortgage Insurance.
For eligible Aboriginal or Torres Strait Islander homebuyers, this contribution is up to 35% and the minimum required deposit is 3.5%.
The Victorian Homebuyer Fund is a shared equity scheme, meaning that the financial contribution from the Homebuyer Fund to the purchase price is made in exchange for a proportional interest (a share) in the property.
As the value of the property changes, so too will the value of the Homebuyer Fund’s interest in the property. This means the Homebuyer Fund will share in any capital gains proportionate to its interest in the property.
Participants can repay the Homebuyer Fund’s interest in their property over time, including through refinancing or using savings, and must do so when the property is sold and in other circumstances.
-
Check the eligibility of the property
The property you purchase must be in Victoria.
The property must be a standard residential property such as a house, townhouse, unit or apartment (vacant land is not eligible) and must be $950,000 or less in Metropolitan Melbourne and Geelong, or $700,000 or less in regional Victoria.
The purchase can be for an existing or new property provided that a certificate of occupancy has been issued prior to the date of the contract of sale. The property must also be vacant when purchased or, if under a lease, the lease must expire within 12 months of the acquisition date and the tenants must vacate the property.
-
Find a property and enter a contract of sale
Once you have received approval for a compliant home loan from a participating lender, your lender will lodge your application for the Homebuyer Fund with the State Revenue Office. If your application is successful, you will be granted provisional approval for the Homebuyer Fund. This means you will have 6 months to enter into a contract of sale for an eligible home.
At this stage, you will receive a range of documents to review, including a Participation Agreement, Scheme Mortgage, Scheme Mortgage Terms and a Letter of Support. You will also be required to watch a short video explaining the Homebuyer Fund.
Once you find a property and enter into a contract of sale, you must contact your lender who will progress your application to the final application stage and begin the settlement process.
Before settlement, you should engage a lawyer or conveyancer to assist you with the settlement process. It is at this stage that you must provide your lender with a certificate of currency of insurance.
-
Settlement
At settlement of your property, and as with most settlement transactions in Victoria, the contribution from the Homebuyer Fund will be provided via the independent Electronic Lodgement Network Operator (ELNO) workspace for the settlement of the property (unless alternative arrangements are negotiated and agreed). Your lawyer or conveyancer will assist with disbursements.
News and updates
-
10 September 2025
Victorian Homebuyer Fund closed to new participants
-
1 July 2025
Short-term extension of Victorian Homebuyer Fund
-
3 December 2024
State Taxation Further Amendment Act 2024
