error Please note that we do not have accreditation with IMB and cannot assist you with the ACT Shared Equity Scheme. However, there are other shared equity schemes available for which you may be eligible.
What Is The ACT Shared Equity Scheme?
The ACT Shared Equity Scheme is offered by the Australian Capital Territory
Government. This scheme helps first-home buyers purchase a home by providing them with a percentage of the purchase price as a shared equity loan. This loan does not have to be repaid until the home is sold or the loan is refinanced. Housing ACT implements this scheme in partnership with IMB Bank. This is one of
many shared equity schemes available throughout the country.
The scheme’s objectives are
- To provide homeownership opportunities to public housing tenants.
- To encourage lower- to moderate-income tenants to consider the home purchase as an option, releasing funds for an increase in the supply of appropriate housing for those tenants with greater financial need.
- To relinquish assets to generate additional funding for the rejuvenation of the public housing stock portfolio through acquisition, construction, and/or refurbishment.
- To acquire appropriate replacement housing targeted at prospective tenant needs.
How Much Can I Borrow?
- The scheme allows eligible tenants to purchase 70% of their Housing ACT property upfront, with IMB providing the finance.
- The remaining 30% equity of the property remains with Housing ACT.
- The purchaser agrees to progressively purchase this equity from Housing ACT (15% is to be repaid within five years after settlement and the rest within 15 years of settlement).
Am I Eligible For The ACT Shared Equity Scheme?
You are eligible to buy your Housing ACT home if you
- have been a continuous public housing tenant for a minimum of three years
- are a current head tenant and are occupying the dwelling you are applying to purchase
- have no rental arrears or legal action pending regarding tenancy matters
Are All Housing ACT Homes Available For Sale?
Not all properties are eligible for the ACT Shared Equity Scheme. There are several reasons why a property may not be approved for sale, such as
- not being separately titled, being built less than ten years ago
- being located in a suburb where Housing ACT owns less than 5% of properties
- not having a suitable replacement property
- having recently undergone expensive upgrades or maintenance
not aligning with government priorities.
The scheme will also evaluate the property’s availability based on factors such as
- the age of the property
- the size of the property, including the number of bedrooms
- location/zoning of the property
- level of public housing ownership in the suburb
- availability of replacement properties
- development potential of the property
How Do I Apply For The ACT Shared Equity Scheme?
Registering Your Interest
To register for the ACT Shared Equity Scheme, you must fill out the Registration of Interest form. You can find the form and more information about the program, including contact details, on the program’s website.
Eligibility Assessment
On receipt of your registration of interest form, Housing ACT will assess your eligibility to purchase the home and whether the property is available for sale. You will receive written notification if you are not eligible for the scheme or the property is unavailable. If you are eligible and the property is available, you will receive an acknowledgement letter confirming your eligibility to move forward with the valuation of the property and the rest of the process.
For more information on how to apply for the ACT Shared Equity Scheme, visit the program’s website.
What Are The Other Options If I Don’t Qualify?
If you don’t qualify for the ACT Shared Equity Scheme, other options are available to help you purchase a home.
One option is a guarantor home loan, which allows first-time homebuyers to borrow up to 105% of the property value with no Lenders Mortgage Insurance (LMI). Other options include no-LMI home loans for doctors and selected medical professionals and waived LMI home loans for certain industry professionals such as accountants, lawyers, and mining specialists.
Additionally, there are 85% home loans with no LMI and no guarantor for borrowers with a strong financial situation and clear credit history. Some lenders also offer 95% home loans with LMI, allowing you to purchase a home with a 5% deposit.
We’re Here To Help
If you are looking for assistance with shared equity schemes, we recommend talking to our expert mortgage brokers. They can help you understand the eligibility requirements, guide you through the application process, and provide you with the support you need to participate successfully.
Call us on 1300 889 743 or enquire online today.
