Shared Equity Scheme Bendigo: 5% Deposit Guide

Bendigo first-home buyers can now use the shared equity scheme to buy a property with a deposit as low as 5 per cent, with the state government taking up to a 30 per cent stake in the home.

The change arrives as the Victorian median house price sits near $490,000 and many local buyers face deposit hurdles that stretch beyond five years of saving. Remote workers moving from Melbourne and young families already priced out of Flora Hill and Strathdale have pushed demand higher in the past 18 months.

Properties in Flora Hill near the Bendigo Hospital campus and blocks in Strathdale along the Bendigo Creek trail have seen the strongest interest from first-home buyers this year. The City of Greater Bendigo has recorded 142 first-home buyer settlements in those two suburbs between January and June.

Step-by-step application process

Applicants must first confirm they meet the income caps of $125,000 for singles or $200,000 for couples and have not owned property in Australia before. They then approach an approved lender such as Bendigo Bank to obtain a conditional approval that includes the government equity share.

Next they select a property under the $650,000 price cap and have it valued by the lender’s panel valuer. The state equity stake is calculated on the day of settlement and registered on title alongside the buyer’s mortgage.

Buyers pay the government a small annual fee of 1.5 per cent on the equity portion and can buy out the stake at any time at current market value. The scheme runs through the Victorian Homebuyer Fund and requires a 5 per cent genuine savings deposit plus stamp duty concessions already available under the First Home Owner Grant.

Local sales data from the past quarter show median prices in Flora Hill reached $535,000 while Strathdale medians hit $575,000, both still below the scheme’s upper limit.

Buyers should contact the City of Greater Bendigo’s housing team or an approved lender before 30 September to lock in current valuation rules ahead of any mid-year review.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.