About Shared Equity
Shared Equity is a type of loan that helps people get into their first home. It’s already used in countries such as Australia and the United Kingdom.
Buying a home using Shared Equity
Shared Equity is designed for people who can’t build or buy a home in the region where they live and work, because house prices have increased to beyond the amount they can afford to borrow from a bank.
A Shared Equity loan provides first home buyers with an interest-free top-up loan, which they use together with a normal bank home loan, to buy their house. This means they don’t have to borrow the whole amount from the bank and they don’t have to make regular repayments on the loan. Instead, they repay their Shared Equity loan when they sell the house – the amount they pay depends on how much the home’s value has increased or reduced over the term of the loan.
The home buyer pays all the costs of ownership, such as rates and maintenance.
A downloadable flyer introducing Shared Equity is available here (PDF document, 275 KB).
