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Last Updated: 2nd August, 2023

What Is A Shared Equity Scheme?

A shared-equity scheme or arrangement is when an equity partner acts as both the lender and investor in a property. The equity partner can be the lender or a third-party investor, such as the government. In most shared-equity schemes, the equity partner contributes a portion of the purchase price of the property in exchange for an interest in the property. However, these schemes can operate under different arrangements:
  • A homebuyer takes out a loan for a portion (usually 70%) of the full cost of the property, while the equity partner provides the remaining capital.
  • Tenants under a shared-equity scheme can buy a portion of the property upfront, and pay off the remaining portion with the equity partner.
Shared-equity schemes and programs offered by the government are designed to help homebuyers with low- to medium-sized incomes own property.

Which Shared-Equity Scheme In Australia Should I Get?

The shared equity scheme calculator is an excellent tool for anyone purchasing a property through one of the schemes. It helps you understand which shared-equity scheme is available per your requirements.

What Shared Equity Schemes Are Available In Australia?

We’ve divided the shared-equity schemes available in Australia into three different categories:
  • Nationwide schemes
  • State and territory-wide schemes
  • Schemes lenders offer
Nationwide Schemes State And Territory-Wide Schemes
  • Help to Buy
  • NSW: Shared Equity Home Buyer Helper
  • Victoria: Victorian Homebuyer Fund
  • Queensland: Pathways Shared Equity Loan
  • South Australia: HomeStart Finance Shared Equity Option
  • Western Australia: Shared Home Ownership
  • Tasmania: MyHome Shared Equity Scheme
  • ACT: Shared Equity Scheme
  • Northern Territory: Not available

Help To Buy

Help To Buy is the only nationwide shared-equity scheme available in Australia. Under this scheme, the government contributes 40% for new builds and 30% for existing properties.
Help To Buy Scheme Details
Who Is It For? Low- to middle-income earners, who don’t own property
When Is It Available? From July 2023
How Many Places Are Available? 10,000 places each year
What Is The Minimum Deposit Required? 2% of the purchase price
What Is The Income Cap? $90,000 for singles and $120,000 for couples
What Is The Maximum Allowable Value Of The Property? The maximum value of the property depends on the state and territory where you are buying.
Read our page on the Help To Buy Scheme to find out if you’re eligible and the maximum value of the property you can buy.

NSW’s Shared Equity Home Buyer Helper

The NSW Government will contribute a portion of the purchase price in exchange for an equivalent interest in the property. The contribution is up to 40% for new homes and 30% for existing homes.
Shared Equity Home Buyer Helper Details
Who Is It For?
  • A single parent of a dependent child
  • A single person aged 50 or above
  • Key workers who are first-home buyers (Nurses, midwives, paramedics, teachers, early childhood educators and police officers)
When Is It Available? From 23 January 2023
How Many Places Are Available? 3,000 places each year
What Is The Minimum Deposit Required? 2% of the purchase price
What Is The Income Cap? $90,000 for singles and $120,000 for couples
What Is The Maximum Value Of The Property?
  • $950,000 in Sydney, Newcastle and Lake Macquarie, Illawarra, Central Coast and the North Coast of NSW
  • For other parts of NSW, the maximum property value is $600,000
Read our page NSW’s Shared Equity Home Buyer Helper for more information.

Victorian Homebuyer Fund

This scheme helps Victorians buy a home in exchange for a share of the equity in the property. The participant can buy back the share over time.
Victorian Homebuyer Fund Details
Who Is It For? Australian citizens or permanent residents who do not have an interest in the property at the time of purchase
When Is It Available? It was launched in October 2021
How Many Places Are Available? The scheme will help up to 3,000 households
What Is The Minimum Deposit Required? For Aboriginal and Torres Strait Islander participants, a minimum deposit of 3.5% is required. For everyone else, 5%.
What Is The Income Cap?
  • $128,000 or less for individuals
  • $204,800 or less for joint applicants
What Is The Maximum Value Of The Property? The maximum purchase price is $950,000 in Metropolitan Melbourne and Geelong, and $600,000 in eligible regional locations.
Read our page on the Victorian Homebuyer Fund to get more information.

Queensland’s Pathways Shared Equity Loan

The Pathways Shared Equity Loan assists tenants in purchasing a share in the property they’re currently renting. The tenants are obliged to buy at least 60% of the property they are renting. The size of the share you buy depends on the following factors:
  • Current and expected future income
  • Current costs of living
  • Size of your deposit
  • Current interest rates
  • Current market value of your rental property
      • The property the tenant is renting must be from the Department of Communities, Housing and Digital Economy.
      Pathways Shared Equity Loan Details
      Who Is It For? A permanent resident of Australia who is a tenant in a government-owned property that is available for purchase.
      What Property Can Be Bought? The shared equity loan is available only on properties currently being rented from the department. It is not available for other departmental properties or properties not for sale in the private market.
      What Is The Minimum Deposit Required? You require a deposit of $2,000 on your loan. This deposit must be paid from your own cash savings. Money borrowed or gifted will not be accepted.
      Do I Have To Pay Rent On The Government’s Share Of The Property? No, you do not need to pay rent on the government’s share of the property. You will need to pay the full cost of owning the property.
      What Is The Minimum Income Required? There is no minimum income requirement. Your before-tax income will be used to calculate the initial share you can afford. The monthly repayments will not exceed 35% of your gross monthly income.

      South Australia’s HomeStart Finance Shared Equity Option

      South Australia’s scheme allows homebuyers to borrow up to 25% of the property value as an interest-free and repayment-free loan. It is a secondary loan taken out with a primary HomeStart loan. You can pay off the Shared Equity Option by making voluntary repayments of $10,000 or more on top of the minimum requirements on your primary loan. HomeStart Finance is the South Australian Government’s housing financing company.
      HomeStart Finance Shared Equity Option Details
      When Is It Available? HomeStart has been writing shared-equity loans since 2007
      Who Is It For? An Australian citizen, permanent resident or skilled migrant buying or building a home in South Australia.
      How Much Deposit Is Required The deposit can be as low as 5% to buy an established home or 8% to build a home.
      What Is The Maximum Loan For The Shared Equity Option? The loan cannot be greater than your primary loan and it is capped at $200,000.
      How Much Is The Interest? There is no interest charged on the Shared-Equity option loan. Instead, HomeStart Finance will share in a portion of any gain or loss in the property when you sell your home.

      Western Australia’s Shared Home Ownership

      The Shared Home Ownership initiative is aimed at making home ownership affordable for Western Australians. Western Australia’s Housing Authority will fund a maximum of 30% of the purchase price. The Housing Authority co-owns a share of the property with you, acting as a silent equity partner to help you buy your home sooner. The state government has a list of homes available through the initiative.
      Shared Home Ownership Details
      When Is It Available? The initiative was launched in 2011.
      Who Is It For? First-home buyers purchasing a home in Western Australia
      How Much Deposit Is Required? You can apply for a deposit as low as 2% of the property value.
      What Is The Maximum Income Allowed? Singles earning $700,00 and couples with a combined annual income of $90,000; above the 26th parallel, $110,000
      What Is The Maximum Value Of The Property? There is no maximum property purchase value. However, there is a maximum loan size:
      • Single: $330,000
      • Couple / Family: $380,000
      • Above the 26th parallel*: $480,000
      *Applicants must work, purchase and live in these locations.
      Read our page on Shared Home Ownership WA to get more information.

      Tasmania’s MyHome Shared Equity Scheme

      MyHome is an initiative by the Tasmanian Government to help people buy or build a home to live in. An eligible homebuyer will be jointly purchasing a home with Housing Tasmania. MyHome will provide a maximum contribution of $200,000 or 40% of the purchase price (whichever is lower) of a new home and a maximum contribution of $150,000 or 30% of the price (whichever is lower) for an existing home.
      MyHome Shared Equity Scheme Details
      What Is The Minimum Deposit Required? You need a minimum deposit of 2% of the purchase price. If you are eligible for the First Home Owner Grant, you can use this as a deposit.
      Who Is It For? An Australian citizen or permanent resident buying a home in Tasmania
      What Is The Maximum Income Allowed? A single person with a gross income of less than $87,509 ($1,683 each week) or a couple with a gross income of less than $100,636 (or $1,935 each week)
      What Are The Property Price Caps? If you are buying an existing home, there is a price cap of $600,000.
      Go to our MyHome page to know more about this initiative.

      ACT’s Shared Equity Scheme

      ACT’s Shared Equity Scheme aims to provide a home ownership opportunity to public housing tenants. You will have to pay 70% of the price of the property upfront, and you enter into a loan agreement with Housing ACT to pay the remaining 30% over a period of 15 years.
      Shared Equity Scheme Details
      Who Is It For?
      • You were a public housing tenant for at least 3 years
      • You are a current head tenant and living in the dwelling you want to purchase
      • You have no rental arrears or legal action pending regarding tenancy matters
      Do I still pay rent? No, you do not pay rent. You only pay rent two weeks before the settlement date.
      For more information on this scheme and how it works, check out our page on ACT Shared Equity Scheme.

      Are Shared Equity Schemes A Good Idea?

      Shared-equity schemes can be a great help for eligible homebuyers who cannot save for a deposit. To help you make an informed decision, let’s go through the pros and cons of shared-equity schemes in Australia.

      Pros Of Shared-Equity Schemes