HomesVic: Eligible Lenders and ‘How to Apply Guide’
The HomesVic pilot scheme was officially launched on 12 February 2018 with applications to open at 9:00 am on Monday 19 February 2018. If you are interested in taking advantage of Victoria’s shared ownership scheme it is strongly recommended that you apply as quickly as you can once applications open. Given the scheme is a pilot, there are only limited places available and allocations will be made on a first come first served basis – there are only 400 places initially!
Prior to the opening of applications on Monday 19 February 2018, you should assess whether your personal circumstances meet the HomesVic eligibility criteria.
Which lenders can I apply with for HomesVic?
For the HomesVic pilot, the HomesVic Panel of Financial Institutions will comprise of:
– Bank Australia
– Bendigo Bank
To participate in the scheme, the applicant must secure a home loan from one of the two lenders above, prescribed by the Victorian Government. As a first step, the applicant must secure an in principle or conditional loan approval. The Government will not assess the application before this has occurred. Unfortunately, the Government will also not consider applicants with a home loan from a financial institution that is not on the HomesVic Panel of Financial Institutions.
Did you know that FHBA Mortgages has access to both lenders and can help you compare both lending options and advise which one is most suitable for your circumstances? Talk to an FHBA Broker/Coach to get your finances in order ahead of the launch next week!
HomesVic will open for applications from 9am on 19 February 2018
How do I apply for HomesVic?
The Victorian Government has also announced the key steps involved for applicants looking to use the HomesVic scheme (however, we have summarised it into 7 steps):
Step 1 – Choose your lender
The first step in the application process is to complete and submit an Expression of Interest to your choice of panel lender (that is, either Bank Australia or Bendigo Bank). It is important that you get some advice on which lender is most suited to your needs. Talk to an FHBA Coach to find out what your borrowing capacity is with each of the lenders.
Step 2 – Expression of Interest with the lender
Once you have decided which lender you want to go with, the next step is to express your interest in the lender you have chosen in Step 1. This can be done online on the website of your choice of panel lender from 9:00 am on Monday 19 February 2018. You will receive an immediate receipt of submitting an Expression Of Interest indicating that the panel lender has successfully received it. All Expressions of Interest will be date and time stamped when submitted to the panel lender.
Therefore, it is critical to have the website open just before 9 am!
Step 3 – Expression of Interest with the lender
Once you have submitted your Expression of Interest, you will need to complete a home loan application with your choice of panel financier and complete, sign and submit a HomesVic Application form to that lender. You are not permitted to submit a home loan application form prior to submitting the Expression of Interest form.
Your FHBA Coach can get the application prepared for you at no charge to you!
Once the lender has assessed your potential home loan, the panel financier will forward the application to the HomesVic team for their approval.
Under the scheme, the Government will take co-ownership in your first home!
Step 4 – HomesVic approval and location-allocation
The HomesVic team will assess the application and advise you of the outcome of your application via a letter. The letter will identify the designated dwelling type and priority area in which you may seek to buy, this will dependant on the areas mentioned in your expression of interest form.
The HomesVic team will also inform your chosen panel lender as to the outcome of your application.
Step 5 – Attend a HomesVic information session (Compulsory)
Before buying a property, you are required to attend an information session with the HomesVic team. This information session is intended to provide an overview of the Program to increase your understanding of your roles, rights and obligations. You can also ask any questions at this session!
Of course, your FHBA Coach will also be available to answer any questions before and after this session.
Step 6 – The exciting part begins: Find a property
With approval from your preferred lender, you may look for properties within your allocation (as defined by the designated dwelling type and priority area as per the letter referred in step 4 above).
Before entering into a contract of sale for a property, you will need to negotiate with the vendor’s real estate agent that you can only pay a 5% deposit for the purpose of exchanging contracts and securing the property. If the agent doesn’t agree, then you can contact the HomesVic team.
Step 7 – The best part: Purchase the property
Following the unconditional loan approval from the lender and the Government approval for the scheme, you will, upon purchase of a property, need to pay the deposit at the time of entering into the contract of sale to purchase that property, i.e. 5%.
You will also need to sign and return the Participation Agreement and the Program Mortgage to the HomesVic team.
Need more information?
If you have some questions, please complete the form below and an FHBA Coach will contact you at a time that suits you. Alternatively, please visit the HomesVic site for more details.
First Home Buyers Australia