Infrastructure Victoria has laid out proposals to the state government to provide more choice for first-home buyers and families in the cities.

Many areas in established parts of Melbourne and regional cities like Geelong and Ballarat are able to accommodate more homes to meet the needs of the growing population.

Infrastructure Victoria CEO Dr Jonathan Spear said in order to do this, it is a must to consider policies that would fast-track planning approvals and establish better standards.

“Building more high quality, medium density housing in established suburbs will mean more home choices close to jobs, services and existing infrastructure, at a price more people can afford,” he said.

“We know many people are doing it tough. To make buying a home possible and fairer for many more families and first home buyers, we must provide more affordable — high quality home choices in more locations.”

According to a recent study by Infrastructure Victoria, one in five households said they would trade a detached home in a new suburb for a townhouse or apartment for the same price closer to city centres.

“Households on moderate incomes, many of which are families and first home buyers, are being locked out of Melbourne’s middle suburbs, pushing them further away from jobs, schools and public transport, and locking them in to more travel time in the car,” Dr Spear said.

“Our package of reforms will encourage more diversity of housing across greater Melbourne and our regional centres, especially more three to four-bedroom townhouses, units and apartments.”

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
5.94% p.a.
5.95% p.a.
Principal & Interest
5.95% p.a.
5.95% p.a.
Principal & Interest
5.99% p.a.
5.90% p.a.
Principal & Interest
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

10 policies Victoria can consider to provide more housing options

  1. Reform infrastructure contributions

In order to send the right price signals, there is a need to establish a clear, efficient, and transparent infrastructure contribution system that better reflects the true cost of infrastructure.

  1. Abolish stamp duties

Stamp duties can be replaced by a broad-based land tax to remove distortions created by stamp duty concessions.

  1. Remove home subsidies that encourage greenfield choices without improving affordability

Avoid subsidies that inflate house prices and remove the First Home Owner Grant

  1. Encourage buyers to go after established homes using shared equity

The government’s shared equity scheme must be further developed to cover more eligible locations and push buyers to consider homes in established suburbs.

  1. Measure and incentivise progress towards new local housing targets

There must be a set target for the number, type, and size of new homes in each local government area in Melbourne and offer incentives to meet the targets.

  1. Prioritise and streamline approvals for urban renewal precincts

There must be targets in each precinct for the number, type, and size of new homes, such as developing suitable housing demonstration projects including three-bedroom homes.

  1. Develop better standards for low-rise apartments then increase supply by expanding use of the Residential Growth Zone

Standards set in the Victoria Planning Provisions must be improved to introduce more low-rise apartments, support local governments to rezone more residential areas near public transport and services.

  1. Establish a dual occupancy and townhouse code

Owners must be provided with as-of-right permission to bypass red tape and supply more diverse homes when they comply with the new dual occupancy and townhouse code.

  1. Provide more parking options for homebuyers

Compulsory minimum parking requirements must be reduced or removed to improve choice and affordability of new established area homes that are close to good public transport.

  1. Encourage child-friendly design in new apartments

The Better Apartments Design Standards must be updated to specify better access, versatility, and safety features so apartments are more attractive for households with children.


Photo by Magnascan from Pixabay.