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NSW Government helping their own workers with the ever out of reach property market Posted on February 15, 2023
People living in New South Wales are facing a big challenge in owning their first home. Knowing that a large deposit is needed can be daunting and in the long run opt out of buying.
The NSW Government has launched a scheme called NSW Shared Equity Home Buyer Helper to make home ownership more attainable for eligible applicants, which commenced on the 23rd January 2023.
With as little as 2% deposit, the NSW Government will contribute up to 40% for a new home or 30% for an existing home.
The Scheme allows the Government to have a percentage share of your home equivalent to what they have contributed, this is currently only available through Bendigo Bank. You can save money, as you don’t have to pay Lenders Mortgage Insurance, which usually is the case when you’re borrowing more than 80%.
Monthly repayments are lower since you’re borrowing a smaller amount. As long as you remain eligible for the initiative, no repayments are required, and no rent or interest will be charged. You can make voluntary payments to NSW Government to progressively increase your ownership share.
So, if you’re a single parent caring for children, single aged 50 years or older, or a first home buyer who’s employed as a key worker, that is, nurses, midwives, paramedics, teachers, early childhood educators and police officers, check your eligibility and take the next step to owning your own home.
To be eligible you must:
- Be 18 years of age or older
- Be an Australian citizen, permanent resident or New Zealand Citizen
- Be able to have a minimum deposit of 2% of the purchase price.
- Have gross income limit for singles of $90,000; for couples, $120,000 or less
- Occupy the property as your principal place of residence.
- As a single parent or older single applicant, you cannot own an interest in any land or property at the time of settlement.
- As a first-home buyer key worker, you and/or your partner must not have previously owned an interest in any land or property in Australia.
- You have the funds to cover the upfront cost of buying a home, including conveyancing, legal costs, any inspections and stamp duty.
- Buy a home with a property price no more than $950,000 in Sydney and major regional centres (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW) or no more than $600,000 in other regional areas.