The NSW Government is introducing the ‘Shared Equity Home Buyer Helper’ initiative on 23 January 2023. This initiative will allow eligible homebuyers to purchase their home with a deposit as low as 2%.
How it works
The NSW Government will contribute funds towards the purchase price of the property and will retain an equivalent interest in the property. The maximum contribution is set out as a percentage of the purchase price and differs between new and existing homes.
- New home – up to 40%
- Existing home – up to 30%
While a participant remains eligible for the program, they will not be asked to make any repayments, rent payments or interest payments. However, participants can make voluntary repayments to increase their ownership in their property.
Eligibility
This initiative is open to:
- single parents of a dependent child or children
- single people 50 years or older, or
- first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.
Participants must have gross income of less than $90,000 as an individual, or $120,000 as a couple.
The maximum purchase price for the property is determined by the home’s location:
- $950,000 in Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW), or
- $600,000 in other regional areas of NSW.
Eligible participants must:
- be at least 18 years old
- be an Australian or New Zealand citizen, or be a permanent Australian resident
- have saved the minimum deposit of 2% of the purchase price
- live in the property as your principal place of residence
- not currently own any other property or land
- not be able to service a mortgage without the assistance of the government contribution, but be able to service the mortgage with the help of the government contribution
Upfront costs
All upfront costs are to be paid by the participant (no help from government). However, participants remain eligible to apply for other government grants, such as first homebuyer grants.
Ongoing obligations
Participants must remain eligible for the program. Ongoing obligations include:
- paying property taxes
- maintaining the property
- complying with periodic reviews of ongoing eligibility
Participants may be required to begin making repayments towards the governments share in the property should they no longer meet ongoing eligibility requirements.
For more information available on the NSW government website please click here.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.