Teachers, nurses, police officers, single parents and older singles are one step closer to owning their first home faster with legislation for the NSW Government’s $780.4 million shared equity scheme now introduced to Parliament.
The introduction of the shared equity legislation coincides with the First Home Buyer Choice legislation which will give first home buyers the choice between paying a large upfront stamp duty and a smaller annual property fee – shaving two years off the time needed to save for a deposit.
Premier Dominic Perrottet said under the shared equity scheme, the NSW Government would 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.
“The NSW Government is helping make home ownership a reality for more people across our State including teachers, nurses, police officers, single parents and older single people,” Mr Perrottet said.
“Key workers, single parents and older singles will be able to have the security of home ownership with a lower upfront deposit, a smaller loan, lower repayments, no lenders mortgage insurance and no interest on the Government’s equity share in a property.”
Treasurer Matt Kean said many older Australians struggle to find stable housing, with 37 per cent of individuals over 65 who are not homeowners relying on social or community housing.
“We know that housing security is an especially serious issue for older, vulnerable women,” Mr Kean said.
“Owning your own home is one of the best ways to set yourself up for financial security now and into the future and this scheme will help those facing significant barriers to home ownership buy their own place sooner.”
Minister for Homes Anthony Roberts said this trial scheme would help participants overcome the deposit barrier to home ownership, as well as reducing the size of their mortgage and repayments.
“Under this scheme, buyers will borrow less for their home and lower their monthly mortgage repayments, making home ownership more affordable and easier to access for eligible people,” Mr Roberts said.
“We’re addressing the barriers to home ownership for people facing the highest hurdles, to make owning your own property a reality for more people in NSW.”
Under the NSW Government’s shared equity scheme:
- Up to 3,000 spots will be available each year for two years;
- Key worker first home buyers who are nurses, teachers or police officers – as well as singles over 50 years old and single parents with a child or children under 18 years old 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, and
- 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.
For more information visit https://nsw.gov.au/shared-equity-scheme