Premier Daniel Andrews unveils $2.7bn in election vows, including $1.1bn homebuyer scheme

Victorian Premier Daniel Andrews has made a new round of lofty election promises on Monday to the tune of $2.7bn.

Premier Daniel Andrews’ government has annouced another mammoth round of election promises to the tune of more than $2.7bn

The first came on Monday with the extended trial of the Victorian Homebuyer Fund, which will pay up to a quarter of the price of house purchases.

Budding Victorian homebuyers could have hundreds of thousands of dollars shaved off what they need for a property deposit under the scheme.

This would result in eligible participants needing to have just 5 per cent of the purchase price upfront while the state government foots up to 25 per cent.

The funds would come from a $1.1bn shared equity pile that would be repaid at market value over time or when the property was sold.

Premier Daniel Andrews is set to make lofty election promises on Monday. Picture: NCA NewsWire / Luis Ascui

To be eligible for the scheme, Victorians must earn less than $128,000 as a single or $204,800 combined.

Homes they’re aiming to buy must be valued below $950,000 in Melbourne and Geelong and $600,000 in regional Victoria.

Buyers must also live in the home and not be buying it from a relative.

The scheme was launched in October 2021 and has aided more than 2000 households with buying a home, with the state paying up to 25 per cent of the purchase price.

Another 1000 applicants have already been approved to start house hunting knowing they have a secure funding partner.

This is expected to expand by another 7000 people after the initial $500m pilot funding.

The typical Victorian Homebuyer Fund member to date has paid an average deposit of $35,000 on a property purchase price of around $650,000, with the fund contributing shared equity of $155,000.

Thousands of Victorians could have help from the state government to buy a house. Picture: NCA NewsWire / David Crosling

Treasurer Tim Pallas said the scheme was aimed at getting prospective buyers into the market faster.

“The Victorian Homebuyer Fund has been popular for a reason – it helps people get into their own homes quicker with help from a secure partner,” he said.

“Thousands more Victorians will now be able to realise their dreams with this new injection. Combined with the first-home owner grant and first-home buyer stamp duty relief, it can make a massive difference.”

Mr Andrews also pledged to invest a further $1.6bn in upgrades for schools, kindergartens and sporting facilities if re-elected next month.

More than $25m of these funds would be put towards planning for more than two dozen new schools across Melbourne.

“This is about every child getting every chance in the education state,” he said.

“It’s about thousands of jobs and it’s about making sure that the best teaching and learning is matched by the best facilities.”

The package includes $850m to fund works at 89 existing primary and secondary schools across the state.