Eligible buyers may be able to co-purchase a home under the Federal Government's Help to Buy scheme which was passed in Parliament yesterday.
The shared equity scheme – expected to start early 2025 – offers 40,000 eligible homebuyers a path to ownership with lower upfront costs and a smaller mortgage. It is open to 10,000 buyers per year over four years and includes both new and established homes.
Here's what you need to know
- To be eligible for the scheme, individuals need to have an annual income under $90,000 or $120,000 for couples.
- The Federal Government will contribute up to 40 per cent equity for new homes and 30 per cent for existing homes, reducing the buyer's mortgage by that amount.
- Buyers need a minimum 2 per cent deposit.
- In WA, property price caps are set at $600,000 in Perth and regional centres and $450,000 for other areas.
- It is open to people who have owned homes before and those who haven't.
The government's equity contribution is provided through a loan arrangement with participating lenders, secured against the property. Buyers repay this equity share when they sell the home or refinance.
In WA, Keystart provides another option with shared ownership loans and deposits starting at 2 per cent. Recent changes to Keystart's income and property price limits have made it easier for more Western Australians to access affordable home ownership.
If you're looking to buy your first home or make ownership more attainable, these programs could be the opportunity you've been waiting for.
