Thousands of FHBs register for NSW shared equity 

The NSW government’s multimillion-dollar Shared Equity Home Buyer Helper scheme has received 3,500 inquiries for further information since its announcement last year.

The scheme was officially launched on Monday (23 January 2023) and covers paramedics and early childhood educators as well as first home buyer teachers, police, nurses and midwives, some single parents, and older single buyers after its criteria was expanded. 

The scheme enables eligible key workers to secure a property with a minimum 2 per cent deposit without the “burden” of lenders mortgage insurance.

Up to 3,000 places will be available each year for two years for key worker first home buyers, singles over 50 and single parents with a dependent child or children can apply even if they have previously owned a property.

Buyers must have a maximum gross income of $90,000 for singles and $120,000 for couples and a minimum deposit of 2 per cent of the purchase price, without paying the “burden” of lenders mortgage insurance (LMI) and without having to pay interest on the government’s equity share in a property.

The NSW government will contribute a share of up to 40 per cent for a new property or 30 per cent of an existing property purchased by eligible buyers.

Those interested can access the online self-assessment tool to see if they’re eligible before being directed to contact Bendigo Bank — the launch lending partner for the scheme. 

Other lenders will have the opportunity to join the initiative this year, which will “provide eligible home buyers with an additional choice of lenders”, the NSW government said.

Bendigo Bank has already received 3,500 inquiries for further information and is working through pre-approval applications. 

Minister for Homes, Anthony Roberts, said the lender will inform potential borrowers of their borrowing capacity and place in the initiative before an offer to buy the home can be made.

Premier Dominic Perrottet added that it was exciting to see the interest received and to know that this “initiative will help make the dream of home ownership a reality for thousands more people across this state”.

The $780 million shared equity initiative was part of a broader $2.8 billion housing package alongside the First Home Buyer Choice. 

The maximum value of the property that can be purchased is $950,000 in Sydney and regional centres including the Central Coast, Illawarra, Lake Macquarie, Newcastle, and the North Coast of NSW and $600,000 in other parts of NSW.

If the borrower sells the property, the proceeds of the sale will be paid in the following order: participating lender, state government, and home buyer. 

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.

[Related: NSW expands shared equity home buyer helper criteria]