Victorian Homebuyer Fund: Your Pathway to Home Ownership in Victoria

Buying a home in Victoria just got a little easier. The Victorian Homebuyer Fund (VHF), with a new $700 million expansion, is enhancing its support for first-time homebuyers and those re-entering the housing market. If high home prices or strict deposit requirements have made ownership feel out of reach, the VHF could provide a practical solution. Here’s what you need to know about the fund’s updates and eligibility.

The Victorian Homebuyer Fund empowers first-time buyers to achieve homeownership with increased affordability.

Eligibility Requirements

To benefit from the VHF, applicants need to meet specific criteria to ensure they are the right fit for this shared equity scheme. Eligible applicants must:

1. Residency: Be an Australian or New Zealand citizen or a permanent Australian resident.

2. Age: Be at least 18 years old at the time of settlement.

3. Deposit: Have a minimum deposit saved, 5% of the property price (3.5% for Aboriginal and Torres Strait Islander applicants).

4. Income Limits:

   • For individuals: Earn $135,155 or less per year.

   • For single parents and joint applicants: Have a combined income of $216,245 or less per year.

5. Principal Place of Residence: Commit to living in the purchased property as your main home.

6. No Additional Property Ownership: You must not own any other property, in Australia or overseas, nor hold an interest in any private corporation with property holdings.

7. Approved Financing: Secure a loan from a participating lender and have enough funds to cover acquisition costs, like stamp duty and legal fees.

Benefits of the VHF

The VHF provides some critical advantages for qualifying buyers:

• Reduced Deposit Requirements: By covering up to 25% of the property price (35% for Indigenous applicants), the government’s contribution reduces the buyer’s need to save a large deposit.

• No Lender’s Mortgage Insurance (LMI): Eligible buyers avoid the added cost of LMI, which can save thousands.

• Gradual Buyout: Homeowners can repurchase the government’s share gradually, increasing their equity in the property over time.

• Single Parents Included: The joint income threshold eligibility now applies to single parents, making homeownership more accessible to this demographic.

Victorian Homebuyer Fund Closes to New Participants

Published on 10 September 2025

What This Means for Current Participants

If you’re already participating in the Victorian Homebuyer Fund, your agreement remains valid. You will continue to enjoy the benefits of the program, but you must also meet a number of ongoing obligations, including completing an annual review.

For guidance or updates on your obligations, visit the official State Revenue Office website for the Victorian Homebuyer Fund.

Looking to Purchase a Home?

While the Victorian Homebuyer Fund has closed, aspiring homebuyers will soon have access to the Commonwealth Government’s Help to Buy scheme, a new shared equity initiative designed to continue supporting Australians into home ownership.

This upcoming program will provide similar support, helping eligible buyers purchase a home with a smaller deposit and reduced mortgage requirements.

Disclaimer:

The information provided on this website is for general information and educational purposes only. It does not take into account your personal objectives, financial situation, or needs, and should not be relied upon as financial, legal, or tax advice. While we strive to ensure the content is accurate and up to date, we make no guarantees of its completeness, reliability, or suitability. Any reliance you place on the information is strictly at your own risk. We recommend that you seek independent professional advice before making any financial decisions, including from a licensed mortgage broker, financial adviser, or tax professional. References to government schemes, grants, or lender products are subject to change and eligibility criteria. Please confirm details with the relevant authority or provider. We are not responsible for any loss, liability, or damage incurred as a result of the use of this website or its content.