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What is NSW's Shared Equity Scheme?
Under the Shared Equity Scheme, the NSW government contributes up to 30-40% of the purchase price for your home. This dramatically reduces the deposit required to a minimum of 2% of the purchase price, with no Lender’s Mortgage Insurance (LMI) payable.
It also results in substantially lower ongoing mortgage repayments. In exchange, the government owns up to 30-40% of your property, and shares in the increases and decreases in the property’s value, until you pay off the government’s share. It opens in January 2023 with 3,000 spots.
What groups are eligible?
As this is a trial, there is are three eligible groups:
- First homer buyers who are nurses, teachers or police officers
- Single parents of a child under 18
- Single people over 50 years of age
For eligible groups, what is the criteria?
Participants must satisfy the following criteria:
- Contribute a minimum of 2% of the purchase price
- Have a gross income of less than $90,000 (individuals) or $120,000 (couples)
- Purchase a property worth less than $950,000 (Sydney and regional centres) or $600,000 (regional areas)
- Must live in the property as their principal place of residence
- Must not be able to service the loan without the government’s contribution
When do I have to pay the government back?
Each year, there will be an annual review to make sure you are still eligible. If you are no longer eligible, you may have to start paying back the government’s contribution.
When your income exceeds the relevant threshold for two consecutive years, you will have to start repayments. Further detail hasn’t been released on how these repayments will work.
Can I still access FHBer stamp duty concessions?
Yes, the Shared Equity Scheme does not prevent you from claiming stamp duty exemptions or concessions.
How do I apply for the scheme?
It is best to speak with your broker to determine eligibility and help identify the appropriate participating lender for your needs.
