Huge boost for first-time buyers

Some NSW residents looking to purchase their first home could receive a helping hand from the state government under a shared equity scheme trial that was introduced to Parliament today.

Under the scheme, the NSW government would contribute an equity share of up to 40 per cent for a new home or up to 30 per cent of an existing home, according to Premier Dominic Perrottet.

Mr Perrottet described the move as one that would “make homeownership a reality for more people across our state”.

“Key workers, single parents and older singles will be able to have the security of homeownership with a lower upfront deposit, a smaller loan, lower repayments, no lenders mortgage insurance and no interest on the Government’s equity share in a property,” he said.

The legislation, worth $780.4 million, will not be available to all NSW residents but rather to those who meet certain criteria.

Teachers, nurses and police officers who are looking to purchase their first home will be able to apply for the scheme if it passes, and singles over 50 years old or single parents with children under 18 can also apply.

A maximum of 6000 places will be made available over the next two years, with limits set on who can apply.

Participants cannot be earning over $90,000 if they are single or $120,000 for couples and must have a minimum deposit of 2 per cent.

Properties purchased through the scheme cannot be valued at over $950,000 in Sydney, the Central Coast, Illawarra, Lake Macquarie, Newcastle or the North Coast, or $600,000 in other parts of the state.

The move is also hoped to help older Australians who are struggling to find stable housing, with 37 per cent of people of those over the age of 65 who don‘t own homes relying on social housing, according to Treasurer Matt Kean.

“We know that housing security is an especially serious issue for older, vulnerable women,” Mr Kean said.

“Owning your own home is one of the best ways to set yourself up for financial security now and into the future and this scheme will help those facing significant barriers to homeownership buy their own place sooner.”