The HomesVic scheme recently opened for submissions, and a Brisbane-based property developer has launched a residential lending division
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On Feb. 12, the Victorian government launched HomesVic, a new pilot program that aims to assist low- to medium-income-earning Victorians get into their first homes.
Applications opened Feb. 19. As the pilot shared equity scheme is limited to only 400 first-home buyers, it’s strongly recommended that interested Victorians apply as quickly as they can.
“Given the scheme is a pilot, there are only limited places available, and allocations will be made on a first come, first served basis,” HomesVic said.
To be eligible, an applicant must meet the following criteria:
- Must possess Australian citizenship or permanent-resident status
- Should have resided in Victoria for the past two years
- Must be aged 18 years or older
- Be a “natural person” (i.e. not an organisation, company, trust, or other body)
- Must not be related to, or associated with, the vendor of the property being purchased
HomesVic will take a proportional beneficial interest of up to 25% in the property, and will target applicants with incomes of up to $75,000 for singles, or up to $95,000 for couples and families. Buyers will need to contribute at least 5% of the acquisition price from genuine savings, as well as cover all acquisition costs in addition to the contribution to the acquisition cost.
Applicants must not have existing loans or debts (aside from HELP) in excess of $10,000.
“If you would like to participate in the HomesVic scheme, you will need to reduce your existing loans or debts to $10,000 by the time you submit an application,” HomesVic said.
New option for first-home buyers in QLD
Catapult Property Group, a Brisbane-based property development company with nearly $130m of residential projects in Queensland and Northern NSW, has launched a new residential lending division to assist first-home buyers.
According to Dylan Crowe, director of Catapult Property Group, his company created a first-home buyer program to enable clients to obtain a home loan with a deposit of only $5,000.
“This is a great opportunity to enter the real estate market. The clock is also ticking for first-time buyers of new homes in Queensland with the state government’s $20,000 grant finishing on June 30, 2018,” Crowe said.
Paul Anderson, director of residential lending at Catapult Property Group, said first-home buyers don’t require a 20% deposit plus fees to enter the property market.
“There are many banks that are happy to finance a purchase from as little as five per cent deposit, and in some cases even less than that,” he said.
