First Home Buyer Fund

first home buyer fund

Are you a first time homebuyer in Melbourne Victoria, looking to turn your dream of owning a home into reality? The Victorian Government has introduced the Homebuyer Fund, an initiative designed to support eligible homebuyers in purchasing their first property. In this blog post, we'll dive into the details of the Homebuyer Fund and how it can help you take that significant step towards homeownership.

What is the Victorian Homebuyer Fund?

The Victorian Homebuyer Fund is a shared equity scheme that allows eligible participants to purchase a home with a smaller deposit and reduced mortgage repayments. The scheme is open to Australian citizens or permanent residents aged 18 years or older who don't currently own a property and meet the income thresholds.Under this fund, the Victorian Government may contribute up to 25% of the purchase price of the property, reducing the amount you need to borrow and the size of your deposit. In return, the government will maintain an equivalent proportional interest in the property, which you'll need to pay back when you sell the property, or your circumstances change.

Eligibility Criteria

To qualify for the Homebuyer Fund, you must meet the following criteria:

  • Be an Australian citizen or permanent resident
  • Be at least 18 years old
  • Not currently own a property (either individually or with someone else)
  • Earn $128,000 or less per annum for individuals, or $204,800 or less per annum for joint applicants
  • Occupy the purchased property as your principal place of residence
  • Purchase a property within Victoria with a price within the set location price caps

It's important to note that you cannot use the Homebuyer Fund in conjunction with other government schemes like the First Home Loan Deposit Scheme.

How Does the Homebuyer Fund Work?

The Homebuyer Fund operates as a shared equity arrangement between you and the Victorian Government. Here's a step-by-step breakdown of how it works:

  1. Determine your eligibility by checking the criteria mentioned above.
  2. Find a property within Victoria that meets the location price caps and other requirements.
  3. Apply for the Homebuyer Fund through a participating lender or directly with the Victorian Government.
  4. If approved, the government will contribute up to 25% of the property's purchase price, reducing the amount you need to borrow and the size of your deposit.
  5. You'll need to contribute a minimum of 5% of the purchase price as your deposit.
  6. Complete the purchase of the property and move in within 12 months of the date of the contract of sale.
  7. When you sell the property or your circumstances change, you'll need to pay back the government's proportional interest in the property.

Benefits of the Homebuyer Fund

The Victorian Homebuyer Fund offers several benefits for first-time homebuyers:

  1. Smaller Deposit: With the government contributing up to 25% of the purchase price, you'll need a smaller deposit, making it easier to enter the property market.
  2. Reduced Mortgage Repayments: As you're borrowing a smaller amount, your mortgage repayments will be lower, making home ownership more affordable.
  3. No Interest on the Government's Contribution: You won't be charged interest on the portion contributed by the government, further reducing your ongoing costs.
  4. Opportunity to Buy Sooner: The reduced deposit and mortgage repayments may allow you to purchase a home sooner than you would have otherwise been able to.

Case Study: Sarah's Homebuying Journey

To better understand how the Homebuyer Fund can help, let's look at a case study. Sarah, a 28-year-old nurse living in Melbourne, has been dreaming of owning her own home. With a salary of $80,000 per annum, Sarah has struggled to save a sufficient deposit while also managing her rent and living expenses. After learning about the Homebuyer Fund, Sarah realises she meets the eligibility criteria. She finds a suitable apartment in Melbourne for $600,000, which is within the location price cap. Sarah applies for the Homebuyer Fund and is approved. Under the scheme, the Victorian Government contributes 25% of the purchase price, which is $150,000. Sarah needs to contribute a minimum 5% deposit of $30,000. As a result, Sarah only needs to borrow $420,000 from her lender, significantly reducing her mortgage repayments.Thanks to the Homebuyer Fund, Sarah can now afford to buy her first home much sooner than she anticipated, without the financial stress of a large mortgage.


The Victorian Homebuyer Fund is a fantastic opportunity for eligible first-time homebuyers to enter the property market with a smaller deposit and reduced mortgage repayments. By partnering with the Victorian Government, you can turn your dream of homeownership into a reality sooner than you might have thought possible. If you're considering applying for the Homebuyer Fund or have questions about the property buying process, it's essential to seek expert advice. Contact Pearson Chambers Conveyancing on 03 9969 2405 or email to discuss your situation and receive a free Section 32 contract review. Their experienced team can guide you through the process and help you make informed decisions as you embark on your homeownership journey.

Don't let the challenge of saving a large deposit hold you back from achieving your homeownership dreams. Explore the Victorian Homebuyer Fund today and take that first step towards owning your own home.