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The NSW government has introduced its multimillion-dollar shared equity scheme to Parliament, providing ample opportunity for key workers, single parents and those aged over 50.
NSW’s shared equity scheme was first introduced under a pilot project back in June following months of speculation that one would go ahead in the hopes it’d accelerate activity in the state’s property market.
On 13 October, Premier Dominic Perrottet confirmed that the shared equity scheme had been introduced to Parliament.
Under the 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.
Mr Perrottet said it’s hoped that the scheme will enable teachers, nurses, police officers, single parents and older singles to own their first home faster.
“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 the scheme comes at a critical juncture for the real estate market, with many older Australians struggling to find stable housing.
In fact, 37 per cent of individuals over 65 who are not home owners rely on social or community housing, Mr Kean flagged.
“We know that housing security is an especially serious issue for older, vulnerable women,” he added.
“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.”
Last year saw Victoria introduce a similar shared equity arrangement worth $500 million, aiming to support more than 3,000 Victorians in becoming home buyers.
At the time, Premier Dan Andrews said that while stable, affordable housing has always been important, the “pandemic has heightened financial pressures for Victorians and highlighted the value of having a secure, safe place to call your own”.
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