The Victorian Government has extended its Homebuyer Fund, giving thousands more the chance to break into a housing market that has priced out many would-be buyers. The scheme, launched in October 2021, has already helped more than 15,400 Victorians purchase a home, with two-thirds being first-time buyers. Now, thanks to a short-term extension, another 2,600 can follow suit.
The scheme allows eligible applicants to partner with the Government through a shared equity model. It lowers the upfront cost of home ownership, slashes the need for lenders’ mortgage insurance and reduces monthly repayments. On average, those using the fund are saving about $250 a month—or $3,000 a year—compared to traditional loans with a 20 per cent deposit.
Victorians aged 25 to 44 have been the biggest group to benefit, snapping up homes with a median price of $615,000. Participants still qualify for other perks, like the $10,000 First Home Owner Grant and stamp duty concessions.
Originally due to close on 30 June, the program will now continue until the $2.8 billion Government investment is fully committed. After that, applicants will transition to the Commonwealth’s Help to Buy scheme, which uses a similar equity model.
Treasurer Jaclyn Symes says the extension will help those who are nearly ready to buy take that final step. “With the help of this extension, we will be able to get another 2,600 more Victorians into the home of their dreams between now and the closure of the Fund – a massive win for young families and young Victorians,” she said.
“Extending the fund will make a real difference and help more Victorians get into a home sooner.”
It’s part of a broader housing strategy in the 2025/26 State Budget. That includes $61 million to extend stamp duty concessions on eligible off-the-plan builds for another year, and $24 million earmarked for planning controls across 50 newly designated Activity Centres.
While the fund’s shared equity model has drawn praise for its practicality, there’s also an awareness that it’s a temporary fix in a tight market. As house prices and rents continue to climb, structural questions remain around housing supply, land use, and how future schemes can be made both effective and equitable.
Still, the numbers speak to a strong uptake. With nearly 18,000 expected to have used the scheme by the time the funds run out, the appetite is clearly there. The extension may not be a permanent solution, but for those who act quickly, it could be the difference between browsing and buying.
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