Shared Equity Home Buyer Help

Making Home Ownership A Reality For Single Parents, Older Singles, & Key Worker First-Time Home Buyers

NSW Help To Buy Scheme – Own For As Little As 2%

Surging mortgage rates and an elevated cost of living has made home ownership difficult throughout New South Wales and the country overall, without much reprieve. As the economy tightens, saving up a large enough deposit is a daunting task, and getting qualified for a mortgage is almost impossible as mortgage lenders drastically change approval criteria.
Enter the Shared Home Equity Buyer Help program, a comprehensive NSW initiative to open home ownership to a single parent of a dependent child or children, a single person 50 years of age or above, or  first-time home buyer key workers. With this targeted program, low-income households can make home ownership a dream come true by sharing home equity with the Government of New South Wales in exchange for assistance with total property purchase costs. 

The government’s contribution results in a reduced initial payment and smaller monthly payments on the loan.

How Does Shared Equity Home Buyer Helper Work?

Launching January 23rd, 2023 exclusively with Bendigo Bank, eligible individuals with at least a 2% down deposit can apply to receive significant assistance with purchasing a home. Under this program, the government will provide up to 40% of the purchase price for a new dwelling and 30% for an established property, in exchange for an equal share in the ownership of the property.

Though shared equity allows the government to have an ownership stake in your home, the scheme allows you to qualify for a mortgage that would be otherwise difficult to obtain and save thousands with a lower initial out-of-pocket cost, reduced monthly repayments, and no Lenders Mortgage Insurance (LMI) contributions. Additionally, you can always make voluntary payments to increase your share in the property, making this a flexible and scalable option to become a homeowner and acquire more equity as you progress financially.  

Who Is Qualified For The Shared Equity Home Buyer Helper Program? 

The shared help scheme is designed to make homeownership a reality for Australian citizens 18 and older, who are a single parents of a dependent child or children, a single persons aged 50 or above, or first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators, and police officers. The gross income qualification threshold is no more than $90,000 for singles and $120,000 for couples, applicants must reside in the property and cannot have previously owned an interest in any land or property in Australia.

NSW Shared Equity Home Buyer Helper – The Fine Print

The government’s interest in the property will be secured through a registered second mortgage and participants in this program are not required to make any payments (such as rent or interest) to the government on its equity contribution while they remain eligible for the program. 

All purchase costs, including stamp duty, are the responsibility of the participant.
Participants in this program remain eligible for first-home buyer programs and any stamp duty or land tax concessions that may apply. To maintain their eligibility, participants must use the property as their primary residence and meet ongoing requirements, including property maintenance, property insurance, and periodic reviews. Participants are also responsible for ongoing property costs such as council rates, body corporate fees, and utilities.

When/if the property is sold, the NSW government will also realize profits or losses equivalent to their ownership stake at the time of the sale with the homeowner.

Shared Equity Home Buyer Helper Eligibility Requirements 

To be eligible for the Shared Equity Home Buyer Scheme, you must:

• Be a single parent caring for a dependent child or children, a single person (not married or in a de facto relationship) aged 50 years or older, or a first-time home buyer who is employed as a key worker (teacher, early childhood educator, nurse, police officer, paramedic).
• Live in the property you plan to purchase.
• Be an Australian citizen or permanent resident (including New Zealand citizens with a special category visa) and at least 18 years old.
• Not own or partly own any property (including land) in Australia or overseas (the same applies to your spouse).
• Have a gross annual income that is not more than $90,000 for singles and not more than $120,000 for couples.
• Buy a home that is less than $950,000 in Sydney and major regional centers (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW) or less than $600,000 in other regional areas
• Not have received any other government financial support to buy the property such as the Home Guarantee Scheme
• Demonstrate the ability to save over time, and have a minimum deposit of 2% of the total property price
• Be able to pay for all costs associated with purchasing your home such as conveyancing, legal costs, building inspections, and stamp duty (if applicable)
• Have financial assets that are under 30% of the total property price if your income is more than $90,000 p.a., 45% of the total property price if your income is up to $90,000 p.a., or 65% of the total property price if you are a single person 50 years of age or older
• Meet ongoing property requirements and report any change in circumstances.

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