Victorian government announces $20,000 boost for regional first home buyers
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.
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.
Are you thinking about buying your first home in 2017? Make sure you do your research first by comparing the best home loan deals on the market.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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