This section provides help if you are stuck or can't find what you are looking for. It also has the answers to the most frequently asked questions.
Shared equity is an agreement in which the Victorian Government makes a financial contribution towards the purchase of your property (up to 25%) in exchange for a proportional interest (share) in your property.
As the value of your property changes, so too will the value of the Government’s interest (share) in the property. This means the Government will share in any capital gains proportionate to its interest in the property.
The $2.8 billion Homebuyer Fund will, over time, help up to 17,500 households own their own homes.
From 1 June 2024 until 30 June 2025, there is a cap on the number of applications accepted.
Eligible Aboriginal and Torres Strait Islander applicants can access a contribution of up to 35% of their property price and qualify for a minimum required deposit of 3.5%. To access this level of assistance, Aboriginal and Torres Strait Islander applicants must provide a Confirmation of Aboriginality (COA).
Aboriginal and Torres Strait Islander participants who cannot provide a COA may still be eligible to access the 25% share equity contribution and would require a 5% deposit.
If you identify as Aboriginal and/or Torres Strait Islander when expressing interest in the Homebuyer Fund with Unity Bank, they will ask for your Confirmation of Aboriginality (COA) to be verified by Aboriginal Housing Victoria (AHV). If you provide a valid COA, AHV will verify it within 2 business days and then your application will continue to the next stage.
If you cannot provide a valid COA, AHV can provide information to assist you in obtaining a COA.
Yes, provided you meet the eligibility criteria.
You should first check if you may be eligible via the online tool. If you meet the eligibility criteria from the tool, you will receive an email explaining the next steps.
If you intend to apply for the Homebuyer Fund, you must seek provisional approval before signing the contract. If you are unsure please call the SRO on (03) 7020 1549.
Unity Bank, Bank Australia, Bendigo Bank, Indigenous Business Australia and Commonwealth Bank Australia are the current participating lenders delivering the Homebuyer Fund. Once you have checked your eligibility, which is just a guide, you should get in touch with your chosen participating lender to conduct standard loan assessments and evaluate if you are able to service a mortgage. It is important to understand that while you may be eligible for the Homebuyer Fund, you may not necessarily be eligible for a loan with a lender.
Calculation of income is determined by banks involved in the scheme, in line with their individual lending practices.
No. Your loan must be provided by a participating lender, either Unity Bank, Bank Australia, Bendigo Bank, Indigenous Business Australia or Commonwealth Bank Australia.
Yes. You are also required to pay all costs associated with purchasing your home (often known as acquisition costs) such as conveyancing, legal costs, building inspections and stamp duty (if applicable). You may be eligible for stamp duty concessions and the First Home Owner Grant (FHOG) to assist with these costs.
No. You cannot use the financial contribution from the Homebuyer Fund or your bank loan to pay for any of these acquisition costs. You must have money set aside to pay for these costs.
Yes. The required minimum deposit for most applicants is 5%, or 3.5% for Aboriginal and Torres Strait Islander applicants. The deposit must be from your genuine savings.
Demonstrating genuine savings varies between financial institutions. Check with Unity Bank for the requirements.
No. A contribution from the Homebuyer Fund does not attract interest, however, as the value of your home changes, so too will the value of the Government’s share (or proportional interest). Because you are buying back some or all of the Government’s share in your property, repayments of the Homebuyer Fund contribution will reflect any capital gains of your home.
All applicants must secure in-principle loan approval from their chosen participating lender. Lenders may have different requirements about employees who are on probation. Check with Unity Bank for the requirements.
No. Participants can purchase an eligible property in any location in Victoria. There are different price caps for metropolitan Melbourne, Geelong and regional Victoria. View the full list of price caps and locations.
Yes, provided a certificate of occupancy has been issued at the date of signing a contract of sale.
Yes. You and all Victorian Homebuyer Fund participants attached to the property must live in the home as your principal place of residence.
Yes. The Homebuyer Fund does not impact your eligibility for the First Home Owner Grant (FHOG). If you are eligible for the FHOG, you will be able to apply in the usual way.
You will be required to pay the usual amount of stamp duty that applies at the time of settlement for the full cost of your property. Find out more about stamp duty.
No. To be eligible for the Homebuyer Fund, the property you buy must become your principal place of residence. Based on current policy settings, a property that is occupied by its owners as their principal place of residence is exempt from land tax.
You must notify Unity Bank and the SRO at least 45 days prior to sale. You are required to sell your property via an independent process, such as through a real estate agent. You will be required to meet the full costs of selling your property, including any upfront costs.
You are not permitted to sell your property within 2 years of settlement without the prior written consent of the SRO.
The Homebuyer Fund was preceded by HomesVic, the Victorian Government’s shared equity pilot, which helped several hundred Victorians into their first homes. Shared equity programs have also been operating in several other states, including South Australia (HomeStart), Tasmania (HomeShare) and Western Australia (KeyStart).
You can apply if you are not currently bankrupt (i.e. a discharged bankrupt), there is no impending bankruptcy, and you are not subject to a Deed of Assignment, Deed of Arrangement, Debt Agreement or Personal Insolvency Agreement. You will still be required to meet all other credit checks performed by Unity Bank.
It’s generally advisable to stay within your initial indicative maximum purchase price, as places in the Victorian Homebuyer Fund are limited. However, if your financial circumstances have changed, you may contact your lender to discuss a possible increase to your pre-approved loan. If approved, your lender may submit a new application on your behalf, potentially leading to a revised approval with an updated shared equity contribution and indicative maximum purchase price.
Your property must be insured against damage, destruction (including by fire, storm, and tempest) and any other risk required by Unity Bank to its full replacement value, or on a reinstatement basis. The insurance policy must be taken out with an authorised insurer and must note the interest held by the State (i.e. the State of Victoria.)
However, if your property is on strata title with an Owners Corporation, the policy will be under the Owners Corporation (not your name) and will not need to note the interest held by the State. It is recommended that you check the extent of the coverage offered by the Owners Corporation insurance policy and acquire additional coverage if required.
You will be notified of an outcome within approximately 5 business days once Unity Bank has submitted to the SRO your completed home loan application and your completed Homebuyer Fund application form.
You will receive a letter detailing your indicative maximum purchase price (based on your deposit and in-principle loan approval amount) and the maximum financial contribution you may be eligible to receive from the Government, pending the satisfaction of certain conditions.
You will have 6 months to enter into a contract of sale for an eligible property.
Before buying a property, you will need to watch a short video about the Homebuyer Fund (a link will be provided) and you will need to negotiate with the vendor's real estate agent the provision of a 5% deposit on entering into a contract of sale to purchase the property. If the vendor does not accept a 5% deposit, you will need to contact Unity Bank for advice on the next steps.
You will lose eligibility to the Homebuyer Fund which means the State will not be able to make a financial contribution to the purchase of your home.
You will need to pay the deposit at the time of entering into the contract of sale. You will also need to let Unity Bank and the SRO know you have made a purchase so preparations for settlement can be made.
Within 5 business days you will need to provide a copy of the signed contract of sale to Unity Bank, as well as returning the signed Participation Agreement and the Program Mortgage to the SRO.
You will receive a letter outlining what you need to do before settlement.
No. Any standard sales methodology that is accepted within the real estate industry can be used.
A person or entity who is related to, or associated with you, including:
To be eligible to participate in the Homebuyer Fund, you must not purchase your property from a vendor who is a related person.
If you are unable to enter into a contract of sale by the end of the 6-month period, your provisional approval for the Homebuyer Fund may be cancelled. In making this decision, we will consider any exceptional circumstances that may have affected your ability to enter into a contract of sale within the allotted time. If exceptional circumstances exist, an extension may be granted.
If you are having trouble entering into a contract of sale within the allotted time period, you should contact Unity Bank at least a week before the provisional approval expires, requesting an extension of 3 months. If required, an additional 3-month extension may be granted, bringing the total to a 12-month period including the initial 6 months.
Before entering into a contract of sale, you can withdraw your application at any time by notifying the SRO in writing.
We will commission a valuation of the property from the Valuer-General Victoria at the time you would like to repay some or all of the Government’s financial contribution. Generally, this valuation will be used to calculate the value of the Government’s share in the property at or around the time of payment. View our case studies for more information.
You will be required to repay the Government’s financial contribution within the initial duration of the home loan with Unity Bank plus 60 days.
You may be required to pay the financial contribution early if you breach the terms and conditions of the Participation Agreement or Program Mortgage. In these circumstances, you will be issued an early payment notice asking you to repay the full Government contribution.
Once a contract of sale is entered into (and subject to any cooling off period and/or all conditions of the contract of sale, if conditional, being met), you are required to hold the property as your principal place of residence for at least two years, unless exceptional circumstances occur.
After this time, you can exit the program by either selling your property or repaying the Government’s financial contribution. The latter can be done in a range of ways including by refinancing your home loan (pending approval from Unity Bank), or through voluntary payments.
Yes. Your payment must be at least $10,000 and will need to reduce the Government’s interest by at least 5 percentage points i.e. from 25% to 20%. A valuation will be conducted on your property by the Valuer-General Victoria to determine its current market value. Once the valuation is complete, we will advise you of the payment details. When the payment has been made, you will be notified of the resulting change in the shared equity interest in your property.
You may not sell your property or repay the entire Government’s share within two years of your settlement date without prior written consent from the Homebuyer Fund team (SRO). Requests to sell or make payments are lodged via a participant portal provided after settlement.
The Valuer-General Victoria. It is the Victorian Government's authority on statutory valuations. The Valuer-General oversees valuations for Victorian Government property transactions and rating valuations and will be used to determine your property’s value.
The Government’s financial contribution in your property is secured through a second-ranking mortgage, second to Unity Bank’s mortgage. If you sell your property, proceeds will be applied in the following order to:
Yes. You can refinance your home loan, subject to the approval of Unity Bank. However, you can only increase your borrowings in limited circumstances, such as paying back the Government’s share, or as otherwise permitted by the hardship provisions contained in the Consumer Credit Legislation. This must be approved by the Homebuyer Fund team.
You should notify Unity Bank and the SRO immediately to discuss your options, noting that you are afforded certain protections under the National Credit Code.
Your ongoing eligibility for the Homebuyer Fund will not change. If you want your new partner to also become a registered owner of the property, you will need to apply to the SRO for approval. If granted, your spouse/domestic partner would be added to your Homebuyer Fund contract (changing you from a single participant to joint participants) and could then be added to the property title.
If your income exceeds the gross annual income threshold for 2 consecutive years, you will be required to repay the Government’s financial contribution in part or whole as your circumstances permit. You will need to advise the SRO of your increased income levels and work with Unity Bank to determine the extent to which you can refinance to repay the Government’s financial contribution in part or whole.
The property must be your principal place of residence. Unless we approve, you cannot vacate the property for more than 3 months. Generally, there must be exceptional and unavoidable circumstances to obtain approval for vacating (e.g. caring responsibilities on medical grounds). If we agree, time limits may be imposed.
You may lease part of your property (e.g. a room) provided the property remains your principal place of residence (you continue to live in it) and you adhere to all reporting and other requirements.
If we determine that your property is no longer your principal place of residence, we may request you pay back the Government’s financial contribution within 6 months.
You cannot acquire additional land or property while a participant in the fund unless as part of a discretionary trust or member of a superannuation fund.
Yes. You must engage a lawyer or conveyancer for settlement of the property.
Generally, yes. However, you will need our approval if you are making modifications that:
Modifications that reduce the value of the property are not permitted. In addition, your equity share must not fall below that initially held at the time of purchasing the property as a result of the modifications.
The impact of the proposed modifications on the value of the property will be determined by the Office of the Valuer-General Victoria. Participants will not be required to pay back any increase in the property’s value achieved through approved renovations.
Maintenance is considered functional checks, servicing, repairing, or replacing of necessary infrastructure. This might include:
Maintaining the property to an acceptable standard is a requirement of participating in the Victorian Homebuyer Fund. Prior approval from either Unity Bank or the SRO is not needed for maintenance.
Example: Steve calls a technician to service his gas ducted heating and is advised it is dangerous and needs replacing. Because this is a replacement of necessary infrastructure, Steve does not require prior permission for the work to be done. The cost of the new heater will not be considered when assessing any increase or decrease in the value of his property.
Generally, any renovations under $10,000 would be considered minor and would not require approval from either Unity Bank or the SRO.
Example: Matt and Bill have saved up $8,000 and decide they want to refresh their ensuite. Because the value of the renovations is less than $10,000 and they do not require planning permission, they can undertake the renovations without approval from either Unity Bank or the SRO, which they do. As minor renovations are not considered an approved renovation, there is no impact on future Proportional Interest Amount calculations.
Any renovations costing $10,000 or more or those requiring building or council permits must have prior approval by Unity Bank and the SRO.
The value added by a renovation, if any, will be determined by the Valuer-General Victoria around the time a participant makes a payment to the Victorian Homebuyer Fund. It is important to note that the cost of the renovation may be different to the change in value.
Example 1: Sandeep and Susan purchase a property for $600,000 under the Scheme, which is the same as the initial valuation amount. The Government’s share in the property is $150,000 (25%).
After 10 years, Sandeep and Susan decide to exit the scheme. They had not made any earlier repayments.
The Valuer-General Victoria conducts a valuation and values the property at $750,000.
Sandeep and Susan conducted $25,000 of approved renovations. The Valuer-General-Victoria determined this increased the value of the property by an additional $20,000.
The amount Sandeep and Susan must pay the Government back is $182,500, i.e 25% x ($750,000 - $20,000 + 0).
It is important to note, the value the renovation added to the property, was assessed by the Valuer-General Victoria and subtracted from the valuation to determine the value of the Government’s interest in the property.
Example 2: Brian and Fatimah have saved $10,000 to build a deck off their family room and apply to Unity Bank for permission, which is approved.
A few years later when they decide to make a payment on the property to pay down some of the State’s interest, a valuation is done on the property by the Valuer-General Victoria.
Any value the deck has added to the home will be assessed by the Valuer-General Victoria and subtracted from their valuation to determine the value of the State’s proportional interest in the property.
Via Unity Bank. Contact us to request an approved renovation once you have plans and any required permits. Unity Bank will finalise approval with the SRO.
