Shared Equity Home Buyer Helper: how you can qualify

Shared equity schemes have become a popular option for lower-income families and first home buyers to reach their homeownership dreams faster. These government-backed programs help bridge the gap between a person’s budget and the property’s cost.

In New South Wales, the Shared Equity Home Buyer Helper assists single parents, older singles, key workers, and victims of family violence buy their own homes. Certain eligibility criteria apply.

If you’ve heard about the scheme and you want to know if you qualify, you’ve come to the right place. Here’s what you need to know about the government program.

What is Shared Equity Home Buyer Helper?

The Shared Equity Home Buyer Helper scheme is the NSW Government’s way of helping certain demographics purchase in their own homes. The program is open to:

• single parents
• single persons aged 50 and over
• key workers buying their first home
• victims and survivors of domestic violence

Under the program, the government will contribute up to 40% of the purchase price for new homes and 30% for an existing property. In exchange, the government receives a share in the home’s equity.

You don’t have to pay rent or interest for the government’s contribution if you’re eligible for the program. You can also make voluntary payments over time to move towards full ownership of the home.

You must, however, cover other home-buying costs, including:

• conveyancing
• building and pest inspections
• settlement and registration fees
• legal fees

You also need to pay stamp duty. If you want to know if you’re eligible for a transfer duty exemption, you can check out this guide to the First Home Buyers Assistance Scheme.

Who is eligible for the Shared Equity Home Buyer Helper scheme?

To qualify for the program, you must be at least 18 years old and an Australian or New Zealand citizen, or a permanent resident in Australia. You must also fall into one of these categories:

Single parent with at least one dependent child

A child is considered a dependent if they meet one of these criteria:

• under 16 years old
• between 16 and 18 years old and in full-time secondary study
• between 18 and 21 years old and receives disability support

 You may be asked to provide one of the following documents as proof of single parenthood:

• Centrelink assessment notice
• family tax benefit statement
• child support assessment

If you were married, you will be asked to provide either a divorce certificate or a statutory declaration as evidence of separation.

Older singles aged 50 years and above

If you’re at least 50 years old, you can qualify for the NSW shared equity scheme if you’re single. Retirement also doesn’t make you ineligible for the program. This means you can stay in your home even after you retire.

First home buyer key workers

Key workers buying their first home are qualified for the Shared Equity Home Buyer Helper. You are considered a key worker if you hold the following jobs:

• early childcare educator
• nurse or midwife
• paramedic
• police officer
• teacher

 You can find out more information on the eligibility requirements for each profession on the NSW Government website. 

Victims and survivors of domestic violence

In December 2023, NSW expanded the Shared Equity Home Buyer Helper scheme to allow victim-survivors of domestic and family violence to apply for the program.

Those who have experienced domestic violence within the last five years can apply. You can ask for the limit to be extended up to 10 years if you can provide documentation.  

You will need to provide police or court documents about the case. If you don’t have any, you can ask two authorised persons to complete a domestic and family violence declaration form on your behalf. These persons can include:

• registered health practitioners or social workers
• employees of a NSW government agency that provides services relating to child welfare
• employees of non-government agencies receiving government funding to provide domestic violence, sexual assault, or refuge or emergency accommodation services
• counsellors approved by the Commissioner of Victims’ Rights

You don’t need to discuss your circumstances. All you need to do is submit the required documentation.

Are there income limits for those who want to apply?

The Shared Equity Home Buyer Helper sets gross income and asset limits for those who want to apply. If you’re single, your gross income must not exceed $93,200 to qualify. For couples, joint gross income should be no more than $124,200.

In terms of asset limits, your financial assets must not exceed:

• 30% of the home's purchase price for:
  • joint applicants with a combined gross annual income of more than $93,200
• 45% of the home's purchase price for:
  • single applicants aged 18 to 49
  • joint applicants with a combined gross annual income of up to $93,200
• 65% of the home's purchase price for:
  • single applicants aged over 50
  • victim-survivors of domestic and family violence

If your financial assets are worth over $100,000, you may be required to contribute some or all of the amount at settlement. This will be adjusted for the amount you paid for the deposit.

Which properties are eligible under the Shared Equity Home Buyer Helper?

You’re allowed to buy the following properties under the program:

• a house, townhouse, apartment, or duplex
• a vacant block of residential land with a building contract for a new home
• a property that is set to be demolished with a building contract for a replacement home

The home should not be priced more than $950,000 if it’s in Sydney and major regional centres. Regional centres consist of:

• Newcastle
• Lake Macquarie
• Central Coast
• Illawarra
• North Coast

If the property is in regional areas, it must not be worth over $600,000.

You must intend to live in the home and not own any other land or property. You must also have a 2% deposit ready.

You can check your eligibility for the shared equity program, along with other government assistance schemes, by taking an assessment using NSW’s Home Buyer Assistance Finder.

Another government scheme that helps single parents buy a home with as little as a 2% deposit is the Family Home Guarantee.

How can I apply for the Shared Equity Home Buyer Helper?

You can apply for the Shared Equity Home Buyer Helper through two lending partners:

• Bendigo Bank
• Unity Bank

You will need to discuss your circumstances with these lenders before you can send your application.

Once you have their go-signal, you will be asked to provide proof of:

• regular, ongoing employment
• income, genuine savings, and assets, which must meet the limits
• capacity to meet monthly repayments on top of household and personal expenses

What happens after you buy a home under the program?

To remain eligible, you must live in the home and meet homeownership requirements. These include paying for maintenance, repairs, and home insurance. You will also be responsible for ongoing property costs such as utilities, council rates, and body corporate fees.

The NSW Chief Commissioner conducts a periodic review every two to five years to determine if you’re still eligible for the Shared Equity Home Buyer Helper. A review may also be done if you have notified the commissioner’s office of any changes in your personal circumstances.

If the review finds that you’re no longer qualified, you may be required to refinance your mortgage or acquire a portion or the entire government interest in the property.

You can find out what other government schemes you’re eligible for in this guide to home loans for first time buyers in Australia.

Do you think the Shared Equity Home Buyer Helper is a big boost for those wanting to own a home? What do you think are the pros and cons of the scheme? Share your thoughts below.