Patrick Pretlove is one of thousands who have taken advantage of the Victorian Homebuyer Scheme through Bendigo Bank.
A Victorian first-home buyer scheme that has helped more than 10,000 into homes has only about 4600 places left before it is scrapped.
The Victorian Homebuyer Fund allows the state government to contribute up to 25 per cent of the purchase price of a home, provided a first-time buyer has at least a 5 per cent deposit, reducing their mortgage and avoiding incurring lender’s mortgage insurance (LMI).
It was set to be superseded by a federal scheme in the last budget, but without a firm end date. However that date has now been locked in as June 30, 2025, when the treasury will stop taking applications.
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It will make way for a proposed federal Help to Buy scheme that’s yet to be approved by federal parliament.
While the shared equity scheme has helped nearly 11,000 households purchase their first home since it began in October 2021, the similar Commonwealth government’s program is expected to have just 40,000 places available nationwide across four years.
However the proposed federal initiative will give buyers up to 40 per cent off their home purchase price in a co-buy arrangement.
This follows the $700m injection into the Victorian Homebuyer Fund received in the most recent budget.
A Victorian government spokesman said that investment would assist another 4600 more households purchase a home.
Patrick purchased his first home in Hamlyn Heights, Geelong.
Only the Commonwealth Bank, Bank Australia and Bendigo Bank are able to assist with this scheme, excluding mortgage brokers.
Bendigo Bank has helped more than 5500 people buy their first home through the Fund, making them the biggest lenders of the government initiative.
Patrick Pretlove is one of those who accepted the leg up through Bendigo Bank, which allowed him to purchase a home in Hamlyn Heights, Geelong.
The 23-year-old said it helped enormously when it came to getting into his first residence sooner.
“By having the government contribute a 25 per cent shared equity contribution in the property coupled with my deposit … the loan I had to take out was significantly reduced,” Mr Pretlove said.
It’s unsure when the federal government’s shared equity scheme will officially come into play.
He added that he was comfortable partnering with the government to buy his first home as he knew there were ways for pay out their share of the property in the future.
“I think with the cost of living rising and things becoming a little tighter, it is a great scheme and opportunity to get into the property market,” he said.
Bendigo Bank consumer banking chief customer officer Richard Fennell said with higher prices presenting challenges for many Victorians trying to save a deposit, the scheme could be a way to fast track their plans.
“We’re looking forward to helping many more over the course of the next 12 months,” Mr Fennell said.
A Victorian spokesman said the Fund had already helped almost 11,000 households buy their own home.
“The fund received a further $700m investment in our most recent budget, extending it for another year to assist about 4600 more Victorian households to purchase their own homes,” he said.
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