Tasmania switches up shared equity housing scheme

The Tasmanian government has partnered with locally headquartered lender Bank of us to deliver its home ownership program currently called Homeshare, which is currently funded by Bendigo and Adelaide Bank.

The revamped scheme will be named the Housing Market Entry Program, with recently declared changes applying from 1 July.

The program allows buyers to purchase a home with a deposit as small as 2 per cent, while Tasmania’s director of housing purchases up to 40 per cent of a new property or a house and land package.

Buyers must pay out the director’s share before 30 years, by purchasing the stake or selling the house. The value of the director’s share is calculated on the market value of the property at the time – which could be higher or lower than when it was purchased.

The maximum contribution from the government for the purchase of a new home or house and land package has been raised to $200,000, from being $100,000 as at June last year.

For an existing dwelling, the contribution is now capped at $150,000 or 30 per cent of the property price.

Previously, buyers were not able to purchase existing homes under the scheme.

The required deposit had also been cut from 5 per cent to 2 per cent.

The state government stated the new iteration of the program will not affect current Homeshare participants who have been funded by Bendigo and Adelaide Bank.

For applicants who have pre-finance approval and are waiting to find a house to purchase, finance will still be offered by Bendigo and Adelaide Bank for purchases that settle up to the end of the year.

“The Tasmanian Government would like to thank the Bendigo and Adelaide Bank on behalf of the many hundreds of Tasmanian families that have entered private home ownership as HomeShare participants since its commencement,” Guy Barnett, Tasmanian Minister for State Development, Construction and Housing said.

The changes are part of a recent 10-year housing package rolled out by Tasmania, costing it more than $1.5 billion.

It included a number of measures, such as the extension of stamp duty concessions for first home buyers and pensioners who are downsizing.

[Related: Home construction approvals dive by 18.5%]