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Shared Equity Home Buyer Helper NSW
Written by
Amanda Hampshire
Published on
December 22, 2022

Shared Equity Home Buyer Helper NSW Government

The Shared Equity Home Buyer Helper is a NSW Government initiative to assist eligible home buyers purchase a property with a deposit as low as 2% of the purchase price. The Government will contribute up to 40% of the purchase price for new homes and up to 30% of the purchase price for existing homes.

The Government contribution will reduce the loan amount required to purchase the property and as long as a participant remains eligible for the initiative, no repayments for the government contribution are required, and no rent or interest will be charged on the government share of the property purchase.

The Shared Equity Home Buyer Helper initiative will commence on 23 January 2023. Applications will be accepted during two financial years (2022-2023 and 2023-2024). There will be 3000 places per financial year.

Shared Equity Home Buyer Helper Eligibility

The initiative is open to:

  • single parents of a dependent child or children
  • single people 50 years of age or above, or
  • first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.

Shared Equity Home Buyer Helper Participants must:

  • be 18 years or over
  • be an Australian or New Zealand citizen, or a permanent Australian resident
  • earn a maximum gross income of $90,000 for singles or $120,000 for couples
  • have a minimum deposit of 2% of the purchase price
  • have funds available to cover costs of purchasing property such as conveyancing, legal costs, building inspections and any stamp duty.
  • occupy the property as their principal place of residence
  • not currently own any land or property
  • not be able to service the mortgage for the property purchase without the government contribution but be able to service the mortgage with a participating lender with the government contribution.
  • Be purchasing an owner occupied property with a maximum value of $950,000 in Sydney and regional centres including the Newcastle and Lake Macquarie, Illawarra, Central Coast and the North Coast of NSW, and $600,000 in other parts of NSW.

Ongoing Obligations

To maintain eligibility for the Shared Equity Home Buyer Helper, participants’ ongoing obligations include:

  • paying for property costs
  • maintaining the property
  • complying with a periodic review of ongoing eligibility
  • seeking approval to make any significant renovations
  • You will not need satisfy the key worker or single parent of dependent child status on an ongoing basis

A participant may be required to begin repayment of the government’s share in the property in certain situations, including where they no longer meet certain ongoing eligibility criteria. Revenue NSW will work with participants in meeting this obligation.

Other Grants & Concessions

Shared Equity Home Buyer Helper does not affect other state tax arrangements that first home buyers are currently eligible for. An eligible first home buyer will be able to claim a stamp duty exemption or concession or opt into First Home Buyer Choice as part of their home purchase

Buying Back or Paying out the Government Equity

Participants in the initiative can make voluntary payments to progressively reduce the state’s interest in their property. The minimum payment is 5% of the property value.

When the property is sold, the government will be paid for its interest in the property and proportionally share in the gains or losses with the home buyer from the sale. The proceeds of sale will firstly be used to pay out the loan to the bank, followed by the equity payment to the state Government and then the participant will receive any remaining proceeds of sale.

Which banks are part of the Shared Equity Home Buyer Helper

Bendigo & Adelaide Bank are the only participating lenders in the Shared Equity Home Buyer Helper. Your Assured Lending Mortgage Broker will assist with a loan application to the participating lender.

Shared Equity Home Buyer Helper NSW

Contact an Assured Lending Mortgage Broker for more information today

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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