The NSW’s shared-equity scheme is an initiative to make owning a home easier for lower-income single parents, older singles and first-home buyers who are key workers.
You only need a deposit of 2% or more of the purchase price.
What Is NSW’s Shared Equity Home Buyer Helper?
The NSW Government’s shared equity scheme is called the Shared Equity Home Buyer Helper.
Under this scheme, the government will contribute a proportion of the purchase price in exchange for an equivalent interest in the property.
The contribution is a percentage of the purchase price. The maximum amount is:
- 40% for new homes
- 30% for existing homes
What Are The Benefits Of The NSW Shared-Equity Scheme?
- You buy your home with a smaller deposit
- You save money, as you don’t have to pay Lenders Mortgage Insurance (LMI) which is usually applicable when you’re borrowing more than 80%
- Your monthly repayments are lower since you’re borrowing a smaller amount There are no repayments, no rent and no interest charged on the shared equity portion of the property.
- You can pay off the NSW Government and increase your ownership share.
Who Can Apply For NSW’s Shared-Equity Scheme?
You can apply for the Shared Equity Home Buyer Helper if you are:
- A single parent of a child or children
- A single person who is over 50 years of age
- A first-home buyer who is a key worker
The key workers who can apply are nurses, midwives, paramedics, teachers, early childhood educators and police officers.
NSW Shared-Equity Scheme Lenders
Two lenders offer the Shared Equity Home Buyer Helper:
- Bendigo Bank
- Unity Bank
- Other government schemes like the Home Guarantee Scheme
- A guarantor home loan, which helps you borrow up to 105% of a property’s value
- Waived LMI home loans for essential workers
- No-deposit and low-deposit home loans
- High-LVR home loans
We’re here for you. Call us on 1300 889 743 or complete our free online assessment form today.
What Are The Eligibility Requirements?
- You are 18 years of age or older.
- You are either an Australian citizen, permanent resident or New Zealand citizen.
- You have a deposit of at least 2% of the purchase price.
- You will occupy the property as your principal place of residence.
- The gross income limit for singles is $90,000; for couples, $120,000 or less.
- As a single parent or older single applicant, you cannot own an interest in any land or property at the time of settlement.
- As a first-home buyer and key worker, you and/or your partner must not have previously owned an interest in any land or property in Australia.
- You have the funds to cover the upfront cost of buying a home, including conveyancing, legal costs, any inspections and stamp duty.
- Your financial assets are under:
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.
Is There A Maximum Property Price?
Yes. The maximum property prices depend on where you buy in NSW:
- $950,000: Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW)
- $600,000: Other regional areas of NSW.
What Are My Ongoing Obligations If I Qualify?
After qualifying as a participant for the scheme, you need to fulfil certain obligations to maintain your eligibility. You must:
- Pass annual reviews by providing supporting information
- Get approval from the NSW Government to make any modifications or renovations so that the value of such changes factors into the final sale price of the property
- Maintain the property and keep everything in good working condition
- Take care of recurring property costs, such as water and home loan repayments.
You do not need to satisfy the key worker or single parent of dependent children status on an ongoing basis.
Is NSW’s Shared Equity Home Buyer Helper The Same As Help To Buy?
The main concept of NSW’s Shared Equity Home Buyer Helper is the same as the federal government’s Help To Buy scheme. Both offer the same relief through equity contribution, both do not charge rent, and both allow homebuyers to gain ownership whenever they can afford it.
However, there are differences between them:
- Help To Buy is a nationwide scheme, while the Shared-Equity Home Buyer Helper is only for NSW.
- Help To Buy does not specifically focus on groups, whereas NSW’s shared-equity scheme specifies groups like single parents, key workers, and people over 50.
- Help To Buy is available only to Australian citizens, whereas the shared-equity scheme is available to Australian citizens, New Zealand citizens and Australian permanent residents.
- 10,000 places will be available for the Help to Buy scheme annually, and 3,000 places a year will be available for NSW’s shared equity scheme.
Frequently Asked Questions: NSW Shared Equity Home Buyer Helper
No, you cannot. You can apply for only one of these schemes at a time.
There are 3,000 places each financial year. The scheme will accept applications for two financial years (2022-23 and 2023-24)
If you’re a single parent or a single who’s over 50 and you currently own property, you will need to sell the property before you submit the final application. Please note that pre-approval expires after three months.
You can buy:
- A house (townhouse, apartment/unit or duplex)
- Vacant land with a building contract
- A property that will be demolished. You will need a building contract
Yes. The Shared Equity Home Buyer Helper does not affect the various grants and exemptions available to first-home buyers.
You can still get your grant and stamp-duty concession.
You can make voluntary payments to reduce the state’s interest in your property. The minimum payment is 5% of the property value.
The proceeds from the sale will be paid in the following order:
- The participating lender
- The state
- The participant, subject to any claim on the property
The government will be paid for its interest and proportionally share the gain or loss from the sale of the property.
How Can I Apply For The Shared Equity Scheme In NSW?
- You must contact a participating lender to assess your eligibility before you lodge an application with Revenue NSW.
- Once you’re successful, you will be informed of the maximum contribution amount from the government. The participating lender will then process your application and offer pre-approval. You will then have three months to find and purchase a home.
- To get final approval, you must provide the participating lender with evidence of eligibility and prove that the government contribution is necessary for you to buy the property.
- Once you have final approval, you will get a written confirmation from Revenue NSW to purchase your home.
We’re here to help. Call us on 1300 889 743 or enquire online for free today.