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Eligible homebuyers can now 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 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, using savings, and must do so when the property is sold and in other circumstances.

  1. Check your eligibility

    To be eligible to participate in the Homebuyer Fund, you need to:

    • Be an Australian citizen or permanent resident and be at least 18 years of age at settlement.
    • Have saved the required minimum deposit (at least 5% or 3.5% depending on your circumstances) of your property price.
    • Earn $125,000 or less per annum for individuals, or $200,000 or less per annum for joint applicants. This refers to your gross annual income.
    • Occupy the purchased property as your principal place of residence.
    • Be a natural person (that is, not an organisation, company, trust or other body or entity).
    • Not purchase your property from a vendor who is a related person.
    • Not own an interest in any land at the time of purchase (including as trustee of a trust or beneficiary under a trust).
    • Not be acting as trustee of a trust.
    • Not be a shareholder in any corporation (other than a public company) that owns any land.

    Eligible participants for the Homebuyer Fund need to meet all of the above eligibility requirements and if subsequent assessments by the State and a participating lender are approved, must become registered owners of the property they buy.

    Use our online tool to check if you may be eligible

    Read answers to frequently asked questions about the Homebuyer Fund requirements and ongoing obligations.

  2. Check the eligibility of the property

    The property you purchase must be in Metropolitan Melbourne, Geelong or another eligible regional location. To check if the location you intend to purchase is eligible, you can review our list of eligible locations.

    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 $600,000 or less in other eligible regional locations.

    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.

  3. Gather supporting evidence

    Once you have checked if you may be eligible for the Homebuyer Fund, you can gather the required supporting documentation and approach a participating lender.

    Some of the documentation you may need when applying for a home loan includes:

    • Proof of identification documents, such as a passport, driver licence or birth certificate.
    • Proof on income, such as payslips.
    • Details of expenses, liabilities and assets.
  4. Speak with a participating lender

    Contact your chosen participating lender to organise a time to meet and begin the provisional application process.

    Bank Australia

    Bendigo Bank

    Or if you still have questions about the Homebuyer Fund and your eligibility, contact us on (03) 7020 1549. Our business hours are 8.30am-5pm (AEST), Monday to Friday, excluding public holidays.

  5. Find a property and enter a contract of sale

    Once you have received provisional approval for the Homebuyer Fund, you will have six 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.

  6. 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.

Last modified: 8 October 2021

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