If you’re a NSW first home buyer, chances are you’ve heard of the Shared Equity Scheme NSW. It’s an opportunity for first home buyers to get onto the property ladder by buying into a new or existing home at reduced cost. This could be just what you need to speed up your homeownership efforts! 

Getting a first home buyer loan for sure just got easier with this scheme rollout. We’ll help you understand all the ins and outs of this scheme as it can feel overwhelming, like most first home buyer grants.

In this blog post we share basic information on the Shared Equity Scheme, e.g., how it works, eligibility requirements, and applications. Keep reading to learn more.

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What is Shared Equity Scheme?

The Shared Equity Scheme NSW, recently rebranded as Shared Equity Home Buyer Helper, is a NSW Government initiative that aims to make home owners out of eligible single parents, older singles (aged 50+), and key worker first home buyers — with as little as a 2% deposit.

And here’s the real kicker: there will be no need for you to pay the Lenders Mortgage Insurance!

It began in January 2023 and will receive up to 3,000 applications for two financial years (2022-2023 and 2023-2024).

How does it work?

The government’s contribution will be a certain percentage of the purchase price, with the maximum amount varying depending on whether the property is new or existing. The lending partner gets to decide this percentage after their own assessment.

For new homes, the government’s contribution can reach up to 40% of the purchase price, while for existing homes, it can go up to 30%.

The New South Wales Government will share in the first time buyer’s cost of purchasing a property by acquiring an equivalent interest in the property. 

Is the first time home buyer able to buy back the government’s equity share?

While the participant continues to meet the eligibility criteria, there will be no need for repayments, nor will any rent or interest be imposed. Participants also have the option of making voluntary payments to gradually increase their ownership stake in the property.

Who can apply?

To be eligible, you must:

  • be 18 years or older
  • be an Australian or New Zealand citizen (Australian permanent residents can also apply)
  • have at least 2% deposit
  • occupy the property as your primary residence 
  • not own an interest in any land in Australia or overseas ath time time of purchase
  • demonstrate your capability to service home loans with a participating lender with the government’s contribution
  • comply with all the purchasing costs, including stamp duty
  • comply with ongoing costs (i.e., property costs, property maintenance)
  • purchase a home that’s less than $950,000 in Sydney and major regional centres (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW) or less than $600,000 in other regional areas
  • have not received any other first home buyer grant, e.g., the Home Guarantee Scheme

The applicants are segmented into three demographic groups:

A. Single parentsB. Single personC. Key workers
a. With dependent child/children
b. Have a gross annual income of not more than $90,000 for singles
c. Have financial assets that are under 45% of the total purchase price if your income is up to $90,000 p.a.		a. Not married or in a de facto relationship
b. Have a gross annual income of not more than $90,000 for singles
c. Have financial assets that are under 65% of the total purchase price 		a. Teachers
b. Early childhood educators
c. Nurses
d. Police officers
e. Paramedics
f. Have a gross annual income of not more than $90,000 for singles and $120,000 for couples
g. Have financial assets that are under 30% of the total purchase price if your income is more than $90,000 p.a.

What properties are eligible?

The purchase price of the property must not exceed:

  • $950,000 in Sydney and major regional centres; and
  • $600,000 in all other areas of NSW.

How to apply for Shared Equity Scheme NSW

Bendigo Bank is the participating lender for the Shared Equity Home Buyer Helper scheme. Contact them to discuss your application.

FIND OUT IF YOU’RE ELIGIBLE

Need a mortgage broker for when you’re getting a home loan?

Feel free to reach out to us at Stryve Finance if you have any questions you may have regarding the Shared Equity Scheme NSW. We can liaise with the bank on your behalf and help speed up your application.

Click the link below to talk to a home loan broker today.

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