A $500 MILLION fund will help more than 3000 Victorians become homeowners, the state government announced last week.

And among the eligible locations are the Wonthaggi, Leongatha and Korumburra districts.

The Victorian Homebuyer Fund (VHF) shared equity arrangement reduces the amount of money eligible participants need to enter the property market and relieves Victorian homebuyers from the extra financial burden of Lenders’ Mortgage Insurance.

Under the new scheme, which is an expansion of the HomesVic Shared Equity Initiative, they no longer need to be first home buyers, can buy in a broader range of locations and can have higher household incomes than compared to the earlier pilot.

“Too often I hear about first-time homebuyers, especially young families, struggling to get into the market,” Bass MP Jordan Crugnale said.

“Housing affordability is one of the most significant issues we are facing today. I am so pleased that our Victorian Homebuyer Fund is an innovative way of helping people achieve their home ownership dream.”

The VHF is available to Australian citizens or permanent residents over the age of 18, who currently don’t have an interest in a property and who meet the income thresholds.

Eligible participants only require a 5 per cent deposit and the government provides up to 25 per cent of the purchase price, in exchange for an equivalent share in the property.

Further information and a list of eligible locations is available at vic.gov.au/homebuyer.