Help to Buy - Shared Equity Scheme

A house in Darwin

At the time of writing (4/12/2023) the scheme is not live, so more details will become available of the next few weeks.

There is a press release at this link: https://ministers.treasury.gov.au/ministers/julie-collins-2022/media-releases/help-buy-deliver-more-support-australian-homebuyers

Help to Buy will bring home ownership back into reach for 40,000 Australian households. 

The Government will support eligible homebuyers with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes.  

Homebuyers will need a minimum 2% deposit to participate in the Scheme and will have lower ongoing repayments while they participate in the scheme, providing long‑term relief. 

Help to Buy is intended to support Australians who otherwise would not be able to purchase a home.

States will need to pass their own legislation in order for Help to Buy to operate in their jurisdiction.  

Help to Buy will operate in the territories following passage of Commonwealth legislation.  

Example

For an eligible first home buyer who is a teacher in Darwin buying an existing home at the maximum price of $600,000, the 30% government contribution would be a maximum of $180,000. The government contribution would lower monthly mortgage repayments by around $1080 (assuming an interest rate of 6% over a 30-year term).

Who is eligible for the scheme?

  • You have to be an Australian citizen, at least 18 years of age.
  • Yearly income must be $90,000 or less for individuals, or $120,000 or less for couples.
  • You must live in the purchased home.
  • You must not currently own any other land or property in Australia or overseas, but it doesn't have to be your first home.
  • The required minimum is a 2 per cent deposit of the home price, and the purchaser must be able to finance the remainder of the loan.

You have to also prove you can pay for all associated up-front costs, such as stamp duty, legal fees and bank fees.

You will also be responsible for ongoing costs associated with the property such as rates, strata and electricity bills.

We wait for the scheme to be launched in early 2024. Read more here: https://www.abc.net.au/news/2023-08-18/rent-to-buy-housing-scheme-explained/102743694

For more information on a Mortgage Broker for a Home Loan in Darwin call Nick Kirlew today on 0447 499 794. You can access our Mortgage Calculator here.