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The Victorian and Tasmanian governments have both launched new initiatives to make housing more affordable for local borrowers.
The Victorian government has launched a new pilot shared equity scheme to help low- to medium-income-earning Victorians buy their first home.
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Under the $50 million HomesVic scheme, the government is assisting up to 400 first home buyers that meet the eligibility criteria to enter the market earlier by reducing the amount of money required for their home loan.
The pilot scheme, which will launch in February, will see the state provide up to 25 per cent of the purchase price of a dwelling for low-income first home buyers.
It will target applicants with incomes of up to $75,000 for singles, or up to $95,000 for couples or families, who will only need to provide a 5 per cent deposit.
The homes are in 33 “priority areas”, including 85 Melbourne suburbs, 130 regional towns and suburbs and seven peri-urban towns.
When the properties are sold, participating buyers will pay the proportional interest, which the government will reinvest in other homes.
Treasurer Tim Pallas commented: “This pilot scheme will make it easier for first home buyers to get their foot in the door as well as reduc[e] the size of the loan they’ll need to service.
“Not only do first home buyers deserve a chance to enter the market, but they also deserve more choice about where they live.”
Meanwhile, the Tasmanian government has said that it will invest an additional $125 million into its Affordable Housing Strategy, making it the state’s largest ever investment into affordable housing.
According to Premier Will Hodgman, the investment will provide an additional 1,500 new affordable homes for Tasmanians and a range of supports that will provide housing for around 2,000 households.
“Every Tasmanian deserves a roof over their head, and reducing housing stress and homelessness is a top priority under our plan,” Mr Hodgman said.
Minister for Human Services Jacquie Petrusma said that this initiative will continue the government’s commitment to building more affordable housing to meet increased demand and provide additional supply by addressing all housing needs across all demographics and regions.
Minister Petrusma said: “Stage II will bring the total number of new affordable homes under both stages to 2,400 while also assisting around 3,600 households.
“As part of our additional $125 million investment into affordable housing, $20 million over three years will also be quarantined for purpose-built homes for people living with disability.”
[Related: Mortgage demand continues to climb]
