How the Homebuyer Fund can help you purchase your home  

Saving for a 10-20% deposit is challenging with increasing property prices. To address this issue and create more opportunities for home ownership for low to medium income earners, the Victorian Government launched the Homebuyer Fund in October 2021.  

What is the Homebuyer Fund?  

The Homebuyer Fund is a shared equity scheme that permits the Victorian Government to make a contribution in exchange for a proportional interest in the property.  

Eligible home buyers must have a 5% deposit to receive up to 25% in contribution to the purchase price of their property. Aboriginal and Torres Strait Islander buyers must have a 3.5% deposit to receive up to 35% in contribution.  

The fund is administered by the State Revenue Office and supported by two participating lenders – Bendigo Bank, and Bank Australia.  

Additional Benefits 

The Homebuyer Fund also completely removes the need for participants to add Lenders Mortgage Insurance (LMI) to their loan if the fund covers at least 15% of the purchase price.  

The general cost for LMI is estimated at around 2% of your home loan. While this figure may not seem significant, purchasers could utilise this money to pay off their mortgage. 

This incentive can be used alongside existing concessions and exemptions such as the First Home Owners Grant, Principle Place of Residence and more.  


If the Homebuyer Fund is applied, this does means the purchaser does not has complete ownership of the property. In the circumstance where a purchaser would like to wholly own the property, the purchaser will have to buy back their share from the government.  

Comparative Example  

 With Homebuyer Fund Without Homebuyer Fund  
Property Price $700,000 $700,000 
Victorian Government Contribution $175,000  $0 
Deposit Required  $35,000 $70,000 
Estimated Mortgage Insurance Payment (i.e. LMI) N/A $16,380 
Mortgage Required  $490,000 $630,000 


To qualify for the Homebuyer Fund, a purchaser must meet the following:  

  • Be an Australian Citizen, Permanent Resident or New Zealand citizen  
  • At least 18 years of age  
  • Have a deposit of at least 5% for general applicants or 3.5% for Aboriginal or Torres Strait Islander applicants 
  • Have annual income of up to $125,000 for a single applicant or up to $200,000 for a couple or household of 4 
  • Not own an interest in a property 
  • Not be on the First Home Loan Deposit Scheme  

The property in purchase must be residential and cannot be vacant land or owned by someone related. In particular, the value of the property cannot exceed $950,000 in Greater Melbourne and Geelong or $600,000 in selected regional areas.  

How can W Legal Group help?  

Contact W Legal Group at to find out more about the Homebuyer Fund and how we can assist you with your property needs.  

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