Joining an expanding roster of shared equity schemes popping up around Australia, Tasmania’s MyHome program is designed to help residents enter the property market sooner by reducing the upfront costs they face.
How does MyHome work?
MyHome lets you share the cost of buying a home with the Tasmanian government. So long as you and the home you’re purchasing satisfy the eligibility criteria, the Director of Housing will help bring down the upfront costs by making a substantial equity contribution.
If you plan to buy a new home or house and land package, the equity contribution will come to a maximum of $200,000 or 40% of the purchase price (whichever is lower).
If you plan to buy an existing home, the equity contribution will come to a maximum of $150,000 or 30% of the purchase price (whichever is lower).
Importantly, you will be required to pay off the Director of Housing’s share of the property within 30 years. This can be done by making additional contributions over time or by selling the home and using the proceeds of the sale.
Right now, Bank of us is the only lender participating in the MyHome program. If you’re thinking about applying, make sure to browse the Bank of us home loans currently available.
Who is eligible for MyHome?
To be eligible for MyHome, you must:
- Not own or have an interest in any other property (other than land you may wish to build on under the program)
- Not be an undischarged bankrupt or discharged from bankruptcy within three years before applying
- Not owe any money to Housing Tasmania
- Not have received prior help from the Home Ownership Assistance Program, Streets Ahead or HomeShare
- Be able to pay all related legal and establishment fees
- Be able to pay home loan establishment fees and repayments
- Treat the house you buy as your main residence.
What are the income requirements?
The income requirements for MyHome vary depending on your household type (namely, the number of applicants and how many children you have). The following table provides a breakdown:
|Household type||Gross income limit (per week)||Gross income limit (per annum)|
|1 adult, 0 children||$1,683||$87,509|
|1 adult, 1 child||$1,935||$100,636|
|1 adult, 2 children||$2,072||$107,754|
|1 adult, 3 children||$2,458||$127,821|
|1 adult, 4 or more children||$2,846||$147,990|
|2 adults, 0 children||$1,935||$100,636|
|2 adults, 1 child||$2,323||$120,802|
|2 adults, 2 children||$2,711||$140,970|
|2 adults, 3 children||$3,099||$161,138|
|2 adults, 4 or more children||$3,485||$181,205|
What are the asset requirements?
There aren’t just caps on how much you can earn to be eligible for the MyHome program; your total assets will also be taken into account. According to the Tasmanian government website, your total assets must not exceed $105,800. This includes:
- Lump sum payments (excluding compensation payments)
- Net fixed assets of a business
- Funds received from superannuation and shares, bonds and investments.
Some people will be exempt from both the income and asset test requirements. These include:
- Current tenants in Housing Tasmania properties
- Those who qualify for the FHOG from the Tasmanian government
- First home buyers purchasing an existing home who qualify for the First Home Buyer Stamp Duty Concession.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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