Shared equity homes have been proven successful by state and federal governments. This innovative solution enables silent, passive investors to acquire equity in your home (typically 20-30%) so that you as the owner-occupier only need to mortgage the remaining cost ofthe home. From the lender’s perspective, if a 20-30% deposit has already been paid by an investor, the lender’s risk is sufficiently reduced and the maximum deposit they will ask you to pay will be minimal.
No. The program is designed to assist you with up to 20% of the purchase price to save LMI. However, if you have a small deposit it is better to use it to reduce the shared equity contribution.
The equity share can be purchased back at any time, either in pieces or the full
amount. At the time the homeowner wants to purchase, an external valuation is completed, and the price of the equity is calculated as a percentage of that value.
The program is designed for the owner to be able to buy back the equity with minimal or no additional contribution from their side within the first 10 years. However, this can renewed for further 10 year periods in the future if circumstances require it.
The homeowner can sell the property at any time. The mortgage is paid off and the equity share is paid back as a percentage of the sale price. The homeowner keeps anything remaining.
Purchase price = $800,000
Shared Equity = 20%
If the property was valued at $900,000 after 10 years. The shared equity partners gets $20,000 and the property owner gets $80,000 from the gain.
Yes, you can purchase any property as your home with this equity share model so long as the bank will provide the mortgage on the property as they have their own criteria for assessment.
However, if you choose a property that is currently not in our list of properties you might have to pay some additional fees to extend the program to your choice of property.
If you are eligible for any government help to purchase your home, you can still use that with this equity share model.
There are a number of mortgage brokers that are already trained and experts in this model and they will help you with your finance application for approval from on the 0DEPOSIT Program Program and the lending banks.
Yes, the 0DEPOSIT Program does have fees and some of them can be amortized into the loans.
Yes. The primary requirement is your qualification for serviceability.
Contact us now and our team will help you through the entire process.