For many Tasmanians, buying a first home can feel out of reach, with high deposit requirements and rising property prices making it harder than ever to step onto the property ladder. But what if there was a way to secure a home with just a 2% deposit and lower mortgage repayments? That’s exactly what the MyHome Shared Equity Scheme offers.
This innovative Tasmanian Government initiative, in partnership with Bank of Us, allows eligible first-home buyers to share ownership with the government, reducing the financial burden and helping more people achieve home ownership sooner.
So, how does it work? Let’s dive in.
What is the MyHome Shared Equity Scheme?
MyHome is a shared equity program where the Tasmanian Government, through Homes Tasmania, co-purchases a property with eligible buyers. Instead of taking on a full mortgage, buyers secure a loan through Bank of Us, while Homes Tasmania covers a portion of the purchase price:
- Up to 40% for new builds (capped at $300,000)
- Up to 30% for existing homes (capped at $150,000)
- A purchase price cap of $750,000 for existing homes
With the government covering part of the cost, loan repayments are lower, and Lenders Mortgage Insurance (LMI) can often be avoided. The scheme replaces the older HomeShare program, offering higher contribution limits and more flexibility for buyers.
Why Consider MyHome?
✅ Only a 2% deposit required (instead of the usual 5–20%)
✅ Lower mortgage repayments, making home ownership more affordable
✅ No interest on the government’s equity share
✅ Can be combined with the First Home Owner Grant (FHOG) ($10,000 for new builds)
While MyHome makes home ownership more accessible, buyers must eventually buy out the government’s share within 30 years—either through refinancing or when selling the property. If the property increases in value, the amount needed to buy out Homes Tasmania’s share will also increase.
Who Can Apply for MyHome?
Not everyone qualifies for the MyHome Scheme—it’s designed to help first-home buyers who might struggle to secure a traditional home loan. Here’s a quick look at the eligibility criteria:
🟢 First-home buyers only – You can’t currently own any property (except vacant land).
🟢 Must live in Tasmania – The property must be your primary residence.
🟢 Australian citizen or permanent resident – Temporary visa holders aren’t eligible.
🟢 Minimum 2% deposit required – Grants and incentives can contribute to this.
🟢 Stable financial position – You need to demonstrate the ability to service your share of the loan.
🟢 Property must meet standards – Homes Tasmania won’t co-purchase properties with unapproved structures or significant defects.
There are no strict income limits for most first-home buyers. If you qualify for the First Home Owner Grant or stamp duty concessions, you automatically meet the income requirements for MyHome.
Step-by-Step Guide to Applying
The MyHome application process involves a few extra steps compared to a standard home loan, but here’s a breakdown:
1️⃣ Do Your Research – Speak to Bank of Us or a mortgage advisor to understand your eligibility and borrowing capacity.
2️⃣ Get Pre-Approved – Apply for pre-approval through Bank of Us (takes around 14 days).
3️⃣ Start House Hunting – Find a property that fits MyHome’s criteria.
4️⃣ Make an Offer – When you find the right home, submit an offer with conditions allowing for extra processing time (typically around 90 days total for settlement).
5️⃣ Homes Tasmania Approval – The government will review the property to ensure it meets program requirements (this takes around 21 days).
6️⃣ Sign the MyHome Contract & Tripartite Agreement – Formalizing co-ownership between you, Bank of Us, and Homes Tasmania.
7️⃣ Final Loan Approval & Settlement – Your loan is finalized, and the property is settled (typically takes 12 weeks in total).
8️⃣ Move In & Enjoy Your New Home! 🎉
Potential Challenges to Consider
While MyHome is an excellent opportunity, it’s important to be aware of potential hurdles:
🔹 Longer Processing Time – Unlike a regular property purchase, MyHome approvals take longer (around 90 days total). Ensure the seller is willing to accommodate this timeline.
🔹 Government Property Approval – Homes Tasmania must approve the property, so unapproved structures or significant defects could cause delays or rejection.
🔹 Restrictions on Renovations – Major renovations that require council approval must also be approved by Homes Tasmania.
🔹 Commitment to Occupancy – You must live in the home full-time while the government owns a share. Renting it out isn’t allowed.
🔹 Future Buy-Out Costs – If property values rise, buying out Homes Tasmania’s share will cost more in the future.
How Does MyHome Compare to Other First-Home Buyer Programs?
| Program | Benefit | Key Limitation |
| MyHome | Shared equity, 2% deposit, lower repayments | Must buy out gov’t share within 30 years |
| First Home Owner Grant (FHOG) | $10,000 grant for new builds | Doesn’t apply to existing homes |
| Stamp Duty Concession | No stamp duty on first homes (up to $750k) | Doesn’t help with loan/deposit |
| First Home Guarantee | 5% deposit, no LMI | Requires larger loan (higher repayments) |
| Guarantor Loan | Allows 100% loan via family support | Puts guarantor’s property at risk |
| Buying with Partner/Friend | Shared private ownership | Requires personal financial agreements |
Many buyers combine MyHome with other programs for maximum savings—such as using it alongside the First Home Owner Grant or stamp duty concessions.
Final Thoughts: Is MyHome Shared Equity Scheme Right for You?
The MyHome Shared Equity Scheme is a game-changer for Tasmanians struggling to save a large deposit or afford high mortgage repayments. With lower upfront costs and government-backed support, it’s a fantastic option for eligible first-home buyers looking to break into the market.
However, it does come with conditions—longer settlement times, shared ownership, and restrictions on major changes—so it’s essential to weigh up your options.
If you’re still unsure whether this one’s for you but are considering buying your first home, reach out to our lovely agents at 4one4 Property Co. for expert guidance on navigating the MyHome process, finding eligible properties, and making your homeownership dreams a reality!
