Victorian government announces $20,000 boost for regional first home buyers

Friday 03 March 2017

Article by Tom Watson

In a move aimed at making it easier for young, regional Victorians to remain in their communities, the Victorian state government has today announced a doubling of the first home owners grant from $10,000 to $20,000.

Victorian government announces $20,000 boost for regional first home buyers

Commencing from July 1 2017, the $20,000 grant will be available to any first home buyer building a brand new home in regional Victoria valued up to $750,000, and is expected to help up to 6,000 buyers.

“This is a win for first home buyers in regional Victoria, and it’s a win for local jobs too,” said Victorian Premier Daniel Andrews. 

“By doubling this grant, we’re giving young people in regional Victoria even more reason to live locally.”

Mozo’s mortgage repayment calculator shows just how much difference the extra $10,000 could be for regional first home buyers in Victoria. A buyer with a $390,000 loan would pay $2,150 a month in repayments on the average 4.42% variable interest rate over a 25 year loan, compared to $2,205 a month with a $400,000 loan. That’s a saving of over $6,500 in interest payments alone over the life of the loan.

The government hopes that the grant, which will be available until June 2020, will not only assist regional homebuyers, but also provide an additional boost to the local construction and building industries in those communities.

Premier Andrews noted that the changes to the grant were part of a larger initiative, with the Victorian government having already funded a “record” amount in infrastructure for regional areas. 

“Importantly, we’re not making these changes in isolation. As our regional communities grow, we’re also investing in public transport, local roads, and the schools and hospitals they need,” he said.  

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