Shared equity scheme

Shared Equity Home Buyer Helper is a NSW Government initiative to help eligible home buyers purchase their own home with as little as a 2% deposit.

How it works

The NSW Government will contribute a proportion of the purchase price of a property in exchange for an equivalent interest in the property.

The contribution is a percentage of the purchase price and the maximum amount is determined by whether it is a new or existing home:

new home – up to 40%
existing home – up to 30%.

As long as a participant remains eligible for the initiative, no repayments are required, and no rent or interest will be charged. Participants can also make voluntary payments to progressively increase their ownership share in the property.

For more information visit Revenue NSW.

Download the Shared Equity Home Buyer Helper fact sheet (PDF 1.07MB)

Eligibility to apply

The initiative is open to:

single parents of a dependent child or children
single people 50 years of age or above, or
first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.

Learn more about these groups on the key definitions and eligibility criteria page.

The gross income of the participants must be no more than $90,000 for singles and $120,000 for couples.

Participants must buy a home in NSW with the maximum property price determined by the home’s location:

$950,000 in Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW), or
$600,000 in other regional areas of NSW.

Participants must:

be 18 years or over
be an Australian or New Zealand citizen, or a permanent Australian resident
have a minimum deposit of 2% of the purchase price
occupy the property as their principal place of residence
not currently own any land or property
not be able to service the mortgage for the property purchase without the government contribution but be able to service the mortgage with a participating lender with the government contribution.

Check if you might be able to access Shared Equity Home Buyer Helper by using the Eligibility assessment.

Eligibility assessment

Purchase costs

All purchasing costs (including stamp duty) are the responsibility of the participant.

Those entering the initiative remain eligible for first home buyer grants, any stamp duty or land tax concessions and First Home Buyer Choice where applicable.

Ongoing obligations

To maintain eligibility, participants’ ongoing obligations include:

paying for property costs
maintaining the property
complying with a periodic review of ongoing eligibility.

A participant may be required to begin repayment of the government’s share in the property in certain situations, including where they no longer meet certain ongoing eligibility criteria. Revenue NSW will work with participants in meeting this obligation.

Applying for Shared Equity Home Buyer Helper

If you’re eligible, the process for applying for the initiative is set out on Bendigo Bank’s website. You can contact Bendigo Bank to start discussing your application now.

Find out if you're eligible

Examples

Single parent in Sydney

For an eligible single parent in Sydney buying a new home at the maximum price of $950,000, the 40% government contribution would be a maximum of $380,000. This government contribution would lower monthly mortgage repayments by around $2200 (assuming an interest rate of 6% over a 30-year term).

First home buyer teacher in Wagga Wagga

For an eligible first home buyer who is a teacher in Wagga Wagga 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).

Frequently asked questions

How do I know if I’m eligible for Shared Equity Home Buyer Helper?

Shared Equity Home Buyer Helper is open to:

a single parent of a dependent child or children
a single person 50 years of age or above, or 
first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.

The participant must be at least 18 years of age and be an Australian citizen, permanent resident or New Zealand citizen with a special category visa.

The online eligibility assessment on this page will help you find out whether you are eligible for this initiative.

What key financial criteria must participants meet?

Participants must have:

a maximum gross income of $90,000 for singles or $120,000 for couples
a minimum 2% deposit based on purchase price of the property
funds available to cover costs of purchasing property such as conveyancing, legal costs, building inspections and any stamp duty.

What type of property can I buy as part of Shared Equity Home Buyer Helper?

The maximum value of the property must be $950,000 in Sydney and regional centres including the Newcastle and Lake Macquarie, Illawarra, Central Coast and the North Coast of NSW, and $600,000 in other parts of NSW.

What ongoing requirements are there for participants in the initiative?

As a participant under the Shared Equity Home Buyer Helper, you are required to fulfil on a number of ongoing requirements, including:

paying property costs (home insurance, council rates, utilities bills)
maintaining the property to an acceptable standard
seeking approval to make any significant renovations, and
complying with periodic reviews – initially no earlier than 2 years after the purchase of your home.

You will not need satisfy the key worker or single parent of dependent child status on an ongoing basis.

How long will Shared Equity Home Buyer Helper run for?

Shared Equity Home Buyer Helper commenced on 23 January 2023. Applications will be accepted during two financial years (2022-2023 and 2023-2024). There will be 3000 places per financial year.

Can I access both the NSW and Commonwealth shared equity initiatives?

No, a home buyer will only be able to benefit from one of the shared equity initiatives.

Can a first home buyer participate in Shared Equity Home Buyer Helper and claim stamp duty exemptions?

Yes, Shared Equity Home Buyer Helper does not affect other state tax arrangements that first home buyers are currently eligible for. An eligible first home buyer will be able to claim a stamp duty exemption or concession or opt into First Home Buyer Choice as part of their home purchase.

Which bank is the lending partner for Shared Equity Home Buyer Helper?

Bendigo Bank is the participating lender in Shared Equity Home Buyer Helper.

Can I buy back an equity share back from the government?

Participants in the initiative can make voluntary payments to progressively reduce the state’s interest in their property. The minimum payment is 5% of the property value.

What happens when I sell the property?

The proceeds of sale will be paid in the following order: first, the participating lender, followed by the state, and then the participant subject to any other claim on the property.

The government will be paid for its interest in the property and proportionally share in the gains or losses with the home buyer from the sale.

How do I apply for Shared Equity Home Buyer Helper?

The process for applying for the initiative is set out on Bendigo Bank’s website. You can contact Bendigo Bank to start discussing your application now.

Contact us for further information

Information about the initiative can be obtained from Service NSW on 1300 135 195.

Last updated: 23 January 2023