Thousands of teachers, nurses, police officers, single parents and older singles will have the opportunity to own their own home sooner after legislation for the NSW Government's $780.4 million shared equity scheme passed Parliament today.
Under the scheme, due to begin early next year, the NSW Government will contribute an equity share up to 40 per cent for a new home or up to 30 per cent for an existing home purchased by eligible buyers.
Premier Dominic Perrottet said key workers, single parents and older singles struggling to enter the housing market will soon receive help to make their home ownership dreams a reality.
"They will benefit from the security of their own home sooner, with a lower deposit, smaller loan and less in repayments," Mr Perrottet said.
"The shared equity scheme will allow up to 6,000 eligible key workers and low-income households to own their own homes with a minimum 2 per cent deposit, but without the burden of lenders mortgage insurance and no interest on the Government's equity share in a property."
Minister for Homes Anthony Roberts said participants in the scheme would remain eligible for first home owner grants and any stamp duty exemptions or concessions.
"Saving a deposit is a huge barrier to home ownership. Lower upfront costs will allow more lower-income households to buy their own homes," Mr Roberts said.
"Buyers will be able to borrow less for their home and pay lower monthly mortgage repayments, reducing the level of risk they're taking on, especially with the likelihood of future interest rate increases."
Under the scheme:
- Up to 3,000 spots will be available each year in 2022-23 and 2023-24
- Key worker first home buyers who are nurses, teachers or police officers – as well as singles over 50 and single parents with a child or children up to 18 – can apply
- Participants must have a maximum gross income of $90,000 for singles and $120,000 for couples
- Participants must have a minimum deposit of 2 per cent of the purchase price
- The Government will make a maximum equity contribution of 40 per cent for a new home and 30 per cent for an established home
- The maximum value of the property that can be purchased under the scheme 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.
The shared equity scheme is part of the NSW Government's $2.8 billion Housing Package. The package aligns with the Housing 2041 vision, which drives the supply of affordable, diverse, and resilient housing options for our communities.
