Victorian Homebuyer Fund FAQ

A: Shared equity is an agreement in which the Victorian Government makes a financial contribution towards the purchase of your property (up to 25%) in exchange for a proportional interest (share) in your property.

As the value of your property changes, so too will the value of the Government’s interest (share) in the property. This means the Government will share in any capital gains proportionate to its interest in the property.

A: The $2.8 billion Homebuyer Fund will, over time, help up to 17,500 households own their own homes.

From 1 June 2024 until 30 June 2025, there is a cap on the number of applications accepted.

A: Eligible Aboriginal and Torres Strait Islander applicants can access a contribution of up to 35% of their property price and qualify for a minimum required deposit of 3.5%. To access this level of assistance, Aboriginal and Torres Strait Islander applicants must provide a Confirmation of Aboriginality (COA).

Aboriginal and Torres Strait Islander participants who cannot provide a COA may still be eligible to access the 25% share equity contribution and would require a 5% deposit.   

A: If you identify as Aboriginal and/or Torres Strait Islander when expressing interest in the Homebuyer Fund with Unity Bank, they will ask for your Confirmation of Aboriginality (COA) to be verified by Aboriginal Housing Victoria (AHV). If you provide a valid COA, AHV will verify it within 2 business days and then your application will continue to the next stage.

If you cannot provide a valid COA, AHV can provide information to assist you in obtaining a COA. 

A: You should first check if you may be eligible via the online tool. If you meet the eligibility criteria from the tool, you will receive an email explaining the next steps.

A: If you intend to apply for the Homebuyer Fund, you must seek provisional approval before signing the contract. If you are unsure please call the SRO on (03) 7020 1549.

A: Unity Bank, Bank Australia, Bendigo Bank, Indigenous Business Australia and Commonwealth Bank Australia are the current participating lenders delivering the Homebuyer Fund. Once you have checked your eligibility, which is just a guide, you should get in touch with your chosen participating lender to conduct standard loan assessments and evaluate if you are able to service a mortgage. It is important to understand that while you may be eligible for the Homebuyer Fund, you may not necessarily be eligible for a loan with a lender.

Calculation of income is determined by banks involved in the scheme, in line with their individual lending practices.

A: No. Your loan must be provided by a participating lender, either Unity Bank, Bank Australia, Bendigo Bank, Indigenous Business Australia or Commonwealth Bank Australia.

A: Yes. You are also required to pay all costs associated with purchasing your home (often known as acquisition costs) such as conveyancing, legal costs, building inspections and stamp duty (if applicable). You may be eligible for stamp duty concessions and the First Home Owner Grant (FHOG) to assist with these costs.

A: No. You cannot use the financial contribution from the Homebuyer Fund or your bank loan to pay for any of these acquisition costs. You must have money set aside to pay for these costs.

A: Yes. The required minimum deposit for most applicants is 5%, or 3.5% for Aboriginal and Torres Strait Islander applicants. The deposit must be from your genuine savings.

Demonstrating genuine savings varies between financial institutions. Check with Unity Bank for the requirements.

A: No. A contribution from the Homebuyer Fund does not attract interest, however, as the value of your home changes, so too will the value of the Government’s share (or proportional interest). Because you are buying back some or all of the Government’s share in your property, repayments of the Homebuyer Fund contribution will reflect any capital gains of your home.

A: All applicants must secure in-principle loan approval from their chosen participating lender. Lenders may have different requirements about employees who are on probation. Check with Unity Bank for the requirements.

A: No. Participants can purchase an eligible property in any location in Victoria. There are different price caps for metropolitan Melbourne, Geelong and regional Victoria. View the full list of price caps and locations.

A: Yes. 

A: Yes, provided a certificate of occupancy has been issued at the date of signing a contract of sale.

A: Yes. You and all Victorian Homebuyer Fund participants attached to the property must live in the home as your principal place of residence.

A: Yes. The Homebuyer Fund does not impact your eligibility for the First Home Owner Grant (FHOG). If you are eligible for the FHOG, you will be able to apply in the usual way. 

You will be required to pay the usual amount of stamp duty that applies at the time of settlement for the full cost of your property. Find out more about stamp duty.

A: No. To be eligible for the Homebuyer Fund, the property you buy must become your principal place of residence. Based on current policy settings, a property that is occupied by its owners as their principal place of residence is exempt from land tax.

A: You must notify Unity Bank and the SRO at least 45 days prior to sale. You are required to sell your property via an independent process, such as through a real estate agent. You will be required to meet the full costs of selling your property, including any upfront costs.

A: You are not permitted to sell your property within 2 years of settlement without the prior written consent of the SRO.

A: The Homebuyer Fund was preceded by HomesVic, the Victorian Government’s shared equity pilot, which helped several hundred Victorians into their first homes. Shared equity programs have also been operating in several other states, including South Australia (HomeStart), Tasmania (HomeShare) and Western Australia (KeyStart).