NSW Shared Equity Home Buyer Helper Plan
If you've been dreaming of owning your own home, the Shared Equity Home Buyer Helper by the NSW Government might just make that dream a reality. This initiative is designed to make home buying more affordable and accessible for eligible individuals.
So, how does Shared Equity work? Essentially, it eases the burden of a mortgage by offering a helping hand from the NSW Government. They can contribute up to 40% of the purchase price for a new home or up to 30% for an existing one. In return, the Government becomes a co-owner, but the house remains yours.
But the perks don't end there. Shared Equity allows you to make a down payment of just 2%, resulting in lower repayments on a smaller loan. Plus, you can kiss expensive lender insurance goodbye. And here's the kicker: you won't be paying interest or rent on the Government's equity share.
Eligibility
Wondering if you're eligible to apply? Shared Equity is open to a range of individuals, including:
Singles aged 50 and over
Single parents with dependent children
First home buyers in key workers roles like police officers, paramedics, nurses, midwives, teachers, and early childhood educators.
Single applicants should earn less than $93,200, and joint applicants should have a combined income of less than $124,200.
Shared Equity is set to expand to include survivors of domestic or family violence by the end of the year. The income thresholds and other criteria mentioned above will still apply.
Other Requirements
Now, let's talk about other requirements. You'll need a deposit of at least 2% of the purchase price, along with funds to cover additional costs like legal fees and building inspections. It's crucial that you can manage a loan with the assistance of the NSW Government's contribution. If you can secure a loan without their help, this program may not be for you.
And the type of property you can buy? Shared Equity isn't picky. Whether it's a house, a house and land package, a townhouse, apartment, or unit, you're covered. The price thresholds are $950,000 for Sydney and major regional areas, and $600,000 for other regional locations.
Here's the catch: the home you purchase must become your primary residence, meaning you need to live in it yourself. There are ongoing criteria to meet, and your eligibility will be reviewed every 2-5 years. If you have the means, you can make voluntary payments to increase your equity share.
The maximum amount you can qualify for depends on your borrowing capacity and the lending criteria of the panel lenders.
How to Apply
Ready to take the plunge? To get started, head over to the NSW website at https://www.nsw.gov.au/housing-and-construction/home-buying-assistance/shared-equity. There, you can check your eligibility and find out how to apply through one of the two approved lending partners, Bendigo Bank and Unity Bank. If you are interested in finding out about the tax benefits and implications a new home might have from a tax accountant, feel free to reach out and contact us. Don't let your dream of home ownership slip away – Shared Equity might be the helping hand you need to make it a reality.