The Government has introduced the Help to Buy Bill 2023 into the House of Representatives. The Bill establishes Help to Buy, a shared equity program that will assist low to middle-income earners to purchase new or existing homes by accessing an equity contribution from the Commonwealth.
UPDATE: The Bill finally passed both Houses on 27 November 2024 and is awaiting Royal Assent.
These shared equity arrangements will be administered and monitored by Housing Australia (formerly known as the National Housing Finance and Investment Corporation) in all States and Territories.
Eligible participants of the Help to Buy program will be helped to purchase a new home by
providing up to 40 per cent of the property’s purchase price or for an existing dwelling by providing up to 30 per cent of the purchase price. The Commonwealth’s equity contribution will be recognised as a second mortgage or other right secured against the property.
Homebuyers will need a minimum 2 per cent deposit to participate in the Scheme, and will have lower ongoing repayments while they participate in the scheme. No LMI will be required.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
