Always dreamed of purchasing your own home but feel like everything just seems out of reach? Been trying to save for that deposit but you feel stretched with the rising cost of living, paying rent, and then got to tend to those high property prices? Thinking of making that big financial decision, but you’re ironically not financially prepared? 

If you found yourself nodding to any of these questions, then you just landed on the right blog post! Because we’re about to share something that would beneficially help you achieve the Great Australian Dream.

Just last month, a new housing scheme called ‘MyHome Shared Equity Program’ was introduced to encourage more Tasmanians to buy or build their own home with extra assistance coming from the government. One of the key factors making the scheme so exciting is the ability to purchase a property with a minimum of two (2) percent of the purchase price- a massive help for those struggling to squirrel away those savings for the larger deposit previously required for deposit.

Currently, Bank of us is the only lending service provider accredited by the Tasmanian Government to implement this scheme. 

The Tasmanian Government has always been committed to improving housing affordability and supporting Tasmanians in terms of homeownership. A lot of people have been facing some financial conflicts and getting their dream home is almost out of the question. The good news, MyHome Shared Equity Program can reduce the costs of purchasing a home! 

How does it work, you may ask? 

In the simplest explanation, under MyHome, you share the cost of purchasing your home with the Director of Housing. The equity contribution coming from the government varies depending on the type of home purchase you are making. 

You may opt to buy a new home or a house and land package and a maximum of $200,000 or 40% of the purchase price–whichever is lower–will be the capital contribution. If you want to consider buying an existing Housing home, the contribution that you may receive is up to $200,000 or 30% of the purchase price (whichever is the lesser amount). If you wish to purchase an existing home instead, the Director of Housing’s equity contribution that you may get will be up to a maximum of $150,000 or 30% of the purchase price (whichever is lower). 

Under MyHome, you must be able to pay out the share of the Director of Housing before 30 years. You can do this in two options: (1) purchase the Director of Housing’s share or (2) sell the house. 

Now, for the million-dollar question: are you eligible?

Qualifications for MyHome 

Going into homeownership is obviously one of the most substantial investments someone enters into in their life. So, it’s understandable that there are a few checks that need to be met and confirmed to be eligible for MyHome. Luckily, these will be thoroughly checked over and considered by the Bank of us or one of their accredited broker representatives.

These factors include your personal circumstances, the type of home purchase and loan you are applying for, and the property you intend to purchase.

In terms of your citizenship and legal age, you cannot be a business or organisation, but rather an individual at least 18 years old and must be an Australian citizen or a permanent resident, living or planning to reside in Tasmania. 

Financial assets-wise, you must have no more than $105,800. This includes your “cash, savings, lump sum payments other than compensation payments, net fixed assets of a business, funds received from superannuation funds and shares, bonds, and investments.” Unless they are considered luxury items, note that net equity in real estate under the program and normal household assets are not included in this computation. 

For the deposit requirements, you have a minimum of two (2) percent of the purchase price or property value as your deposit. According to Bank of us, if you are eligible for First Home Owners Grant (FHOG), this can be used to help you with the deposit and other cost requirements. 

Some exemptions from the income and assets test qualifications are in place for the following situations: (1) If you are a current tenant in a Housing Tasmania property; (2) If you qualify for the FHOG from the Tasmanian Government; and (3) If you are a first home buyer purchasing an existing home and you qualify for the First Home Buyer Stamp Duty Concession. 

Below are some of the other qualifying criteria set by Bank of us to be eligible under MyHome:

• Other than the land you wish to build on under the program, you must not own or have an interest in any other real estate property.
• You should not be an undischarged bankrupt or discharged from bankruptcy within three years before the application date.
• You must not owe any money to Housing Tasmania.
• No help or assistance received under the Home Ownership Assistance Program, Streets Ahead, or HomeShare before. 
• Relative to a property purchase, you should be able to pay legal and establishment fees.
• You must be capable of paying loan establishment fees and ongoing loan repayment requirements with Bank of us.
• The property you are purchasing must be your main residence and thus, you are expected to live there.

To confirm your eligibility, you may click here to check out the MyHome Eligibility Checklist prepared by Bank of us. 

Our Team at 4one4 Property Co. thought this scheme is a brilliant idea and is certainly of great assistance to our fellow Tasmanians who kind of struggle to enter the property market primarily because of affordability issues. Hence, our legendary trio has talked more about MyHome in the latest episode of The Property Pod. Watch and listen as they discuss how this program could help Tasmanians enter the market sooner. 

For more additional information, you may visit the official website of Bank of us and go through the Information Guide and Fact Sheet available for MyHome.