The NSW Government Shared Equity Home Buyer Helper scheme launched on 23 January 2023. It allows eligible applicants to purchase a home with as little as a 2% deposit.
The scheme applies to residential property only and is currently only available through one lender, Bendigo Bank. Other lenders will have the opportunity to join later in the year.
Under the scheme the government can contribute equity up to 30% of the price of an existing home, or up to 40% of a new build, lowering both the loan amounts and repayments of eligible applicants.
The Shared Equity Scheme is limited to 3,000 purchasers per financial year. Applications will be accepted during the 2022 – 2023 and 2023 – 2024 financial years. Eligible applicants for the scheme are:
- single parents with dependent children
- single people who are 50 years or older
- first home buyers employed as key workers: nurses, midwives, paramedics, teachers, early childhood educators, and police officers.
Applicants must be Australian citizens or permanent residents over the age of 18 and have at least a 2% deposit. They cannot own any other land or property in Australia or overseas at the time of application.
Purchase prices for homes under the scheme are capped at $950,000 for Sydney and major regional areas, and at $600,000 for other areas.
Gross annual income tests of $90,000 for singles and $120,000 for couples apply, as well as asset tests.
Shared equity means the Government has a percentage share of the home, equivalent to what the applicant has contributed, secured by a registered second mortgage. There is no interest or rental payment required, but the expectation is that the government’s equity share is repaid over time or, when the property is sold.
The By Lawyers Conveyancing (NSW) guides have been updated to reflect the detailed eligibility criteria for the Shared Equity scheme and links to the Revenue NSW online assessment tool.