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The Victorian government has confirmed that it is extending the Homebuyer Fund to allow for all allocations to be exhausted.
The Allan Labor government has confirmed it is extending the Victorian Homebuyer Fund to allow new applications to be made beyond the original 30 June cut-off date.
The short-term extension will be in place until the government’s investment of $2.8 billion is exhausted.
The extension will help an estimated 2,600 more Victorians buy their own home, bringing the total up to 18,000 home buyers assisted by the fund since its launch, the Allan government claimed.
After the extension ends, Victorians will transition to the Commonwealth’s Help to Buy scheme.
The Victorian Homebuyer Fund is the state government’s shared equity scheme, aimed at making it easier for people to buy a home through the government making a financial contribution to the purchase of a home in exchange for an equity share, which participants can buy back over time.
Through the scheme, the government provides eligible participants with a contribution of up to 25 per cent of the home’s purchase price.
Participants need to contribute a minimum of 5 per cent of the purchase price and cover any acquisition costs, such as stamp duty and conveyancing costs.
Home buyers who use the scheme are also eligible for other first home buyer supports, including stamp duty exemptions and concessions, and the First Home Owner Grants of $10,000.
The Victorian government said the median mortgage repayments for Victorian Homebuyer Fund participants are around $250 lower per month – a saving of around $3,000 per year (compared to if they purchased the same property with a traditional 80 per cent loan-to-value ratio loan).
Since its launch in October 2021, the fund has helped more than 15,400 Victorians buy a home, with a median purchase price of $615,000.
More than two-thirds of the fund’s successful home owners are first home buyers, with 25 to 44-year-olds the largest group utilising the initiative.
Housing at the heart of Victoria’s budget
The Victorian budget 2025–26 included several initiatives to help more Victorians buy a home, including $61 million to extend the stamp duty concession, cutting stamp duty on eligible off-the-plan apartments, units, and town houses for another 12 months.
An additional $24 million is also earmarked for new planning controls for 50 recently announced activity centres.
The 50 new zones are located close to stations and transport links and will provide capacity for more than 300,000 additional homes by 2051, the government said.
Commenting on the Homebuyer Fund extension, Treasurer Jaclyn Symes said: “With the help of this extension, we will be able to get another 2,600 more Victorians into the home of their dreams between now and the closure of the Fund – a massive win for young families and young Victorians.
“Extending the fund will make a real difference and help more Victorians get into a home sooner.”
Victoria’s housing-heavy budget follows similar announcements in recent weeks from state and territory governments in NSW, the ACT, and Queensland, which also made significant commitments to boost housing supply and accessibility.
[Related: Qld to launch new home ownership scheme]
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