Homeownership is a dream for many people, but the rising interest rate can make it difficult for home buyers to enter the market. To help address this issue, the New South Wales (NSW) government offers a Shared Equity Home Buyer Helper program, which provides financial assistance to eligible single parents, older singles and key worker first home buyers.
What is Shared Equity Home Buyer Helper?
Shared Equity Home Buyer Helper is a government initiative that provides financial assistance to eligible home buyers in NSW. The program allows buyers to purchase a home with only 2% deposit and reduce their mortgage repayments by sharing the equity of the property with the NSW government.
Under this program, the NSW government provides a loan that covers up to 40% of the purchase price of the property.
The contribution is a percentage of the purchase price and the maximum amount is determined by whether it is a new or existing home.
- New home – up to 40%
- Existing home – up to 30%
As long as a participant remains eligible for the initiative, no repayments are required, and no rent or interest will be charged. Participants can also make voluntary payments to progressively increase their ownership share in the property.
Eligibility Criteria for Shared Equity Home Buyer Helper
To be eligible for the Shared Equity Home Buyer Helper program, applicants must meet certain criteria, including:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Occupy the property as their principal place of residence
- Have a minimum deposit of 2% of the purchase price
- 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 eligible property in NSW as your principal place of residence
- The shared equity home buyer helper as the following gross income limits:
- A single person – no more than $90,000
- A couple – no more than $120,000
In addition, the property must meet the maximum home purchase price criteria
- $950,000 in Sydney and major regional centres
- $600,000 in other regional areas of NSW
Deposit:
You must contribute 2% of the purchase price of the property (or purchase price of the land and hoe construction costs combined). This contribution must be accumulated through genuine savings as defined by the lender – you can not use a credit card, personal loan or cash gift.
Benefits of Shared Equity Home Buyer Helper
The Shared Equity Home Buyer Helper program provides a number of benefits for eligible home buyers, including:
- A smaller deposit requirement, making it easier to enter the property market
- Lower mortgage repayments, as the buyer is sharing the equity of the property with the NSW government
- The ability to purchase a property that may otherwise have been out of reach due to the high cost of a deposit
- A long-term investment, as the buyer builds equity in the property over time
In conclusion, the Shared Equity Home Buyer Helper program is a valuable opportunity for eligible home buyers in NSW who are looking to enter the property market. By providing financial assistance, the program helps buyers to overcome the challenges of high property prices and high deposit requirements, and to secure a long-term investment in the property market.