Purpose of the fund

The Victorian government introduced the fund in October 2021 to assist first time buyers to own their own home.

Effectively the government will lend you up to 25% of the purchase price if you have saved the minimum 5% deposit.

How does it work?

The Victorian Homebuyer Fund was created to make it easier for Victorians to buy their first home.

You need to have at least 5% deposit.  The Victorian Government could contribute up to 25% of the purchase price and your lender to provide the balance of the purchase price.

The Victorian Government will contribute up to 25% in exchange for an equivalent share of the property. 

With the government contribution, this will save you money by reducing your mortgage and mortgage repayments and removing the need for Lender’s Mortgage Insurance which is required when your deposit is less than 20%.

Who is eligible for the Victorian homebuyer fund?

To be eligible to participate in the Victorian Government Homebuyer Fund, the following requirements must be met:

  • Be an Australian or New Zealand citizen, or a permanent Australia Resident.
  • Be at least 18 years of age at the time of settlement.
  • Have saved at least the minimum 5% deposit of the purchase price (or 3.5% for Aboriginal or Torres Strait Islander participants).
  • Your earnings must be $130,485 or less per annum for an individual, or $208,775 or less per annum for joint applicants.  ‘Earnings’ means your gross annual income.
  • You will be moving into the property as your Principal Place of Residence.
  • Cannot be from a Vendor who is a related person. 
  • Have no interest in any other property in Australia or overseas at the time of purchase (including being a trustee of a Trust or a beneficiary of a trust which owns an interest in property)
  • Have obtained approval for a loan from a lender who is participating in the scheme.

The property purchase must be for standard residential property.  The property can be a house, townhouse, unit, or apartment.  Vacant land is not eligible.  The purchase price must be $950,000.00 or less in Melbourne or Geelong and $600,000.00 or less in regional Victoria.

The property being purchased must be an existing or new property where a Certificate of Occupancy has issued prior to the date of the Contract of Sale.  Off-the-Plan purchases are ineligible.

You must move into the property as your principal place of residence for a minimum of two years.

How do I apply?

You should check your eligibility, and then approach a participating lender to apply for your home loan.  Check the link below to see if you are eligible, to apply and to view the listed participating lenders. 


When do I have to pay the government back?

Participants are required to buy back their share of the property owned by the government over time by way of refinancing, from savings or upon sale of the property.  The government does not charge interest on its investment in your property, but shares with you any capital gains (or loss) proportionate to its share in the property.

Repaying some of the government’s financial contribution

When repaying some of the government’s financial contribution, the government will arrange a valuation of the property to calculate the value of its share of your property.

Your repayment must be a minimum of $10,000.00 and must reduce the government’s interest by at least 5%, (ie: reducing the government interest in your property from 25% to 20%).  Once a valuation of your property has been done, you will be notified of the payment required.  Once payment has been made, the government will advise you of its reduced share in your property.

You are not allowed to repay in full the government’s share in your property for the first two years unless special circumstances apply.

Ongoing requirements

  • Maintaining the property you have purchased;
  • Holding building insurance for the property;
  • Participating in an annual review process with the government.