Designed for Life

2% Home Deposit To Come For Teachers, Nurses, Police Officers & Single Parents


With the increased cost of living, rising interest rates, and continued sustained competition in the real estate market, buying your first home seems to be an increasingly difficult proposition.

Fortunately, the NSW government has recently launched a shared equity trial scheme to make homeownership more achievable for first home buyer key workers, single parents, and older singles.

Here at Vogue Homes being a second-generation family business we understand the value of hard work and the key role first respondents play in our community. We’ve put together this blog to go through some of the finer details of the NSW government’s shared equity home ownership scheme, and see how it can help your home ownership dream become a reality.

What Is the Shared Equity Scheme About?

The NSW Government has announced a $780.4 million investment in a shared equity scheme to help individuals realise their dream of home ownership.

This equity trial scheme is aimed at first home buyer key workers (i.e. teachers, nurses, police), single parents, and older singles, enabling them to live closer to where they want to work, live and raise a family.

Under the scheme, the NSW Government will pay a proportion of the purchase price of a property in exchange for an equivalent ownership share of the property. Further conditions are as follows:

Limit of NSW Government’s Equity Contribution Up to 40 per cent of the purchase price of a new dwelling, and

Up to 30 per cent of the purchase price of an existing dwelling

Minimum Deposit of Purchaser Purchaser must have a minimum deposit of 2 percent of the purchase price.

There is no lenders mortgage insurance required

Applicability of Ongoing Repayments No repayments are required on the equity contribution and no rent or interest will be charged while a participant remains eligible for the scheme
Changes in Equity Split Participants can make voluntary payments to progress to full ownership of their property

Eligibility Criteria

The shared equity scheme is planned to begin in January 2023 and will accept applications during two financial years (2022-23 and 2023-24), with 3,000 places available per financial year.

As with any government scheme, certain eligibility criteria must be met in order to qualify for participation, namely:

Which Individuals Can Participate A single parent of a child or children under 18 years of age,

A single person 50 years of age or above, or 

First home buyer key workers who are nurses, teachers or police

Income Thresholds The gross income of the household must be no more than $90,000 for singles and $120,000 for couples
Property Price Limit The participant must be buying a home with a property price less than $950,000 in Sydney and major regional centres (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW), or 

Less than $600,000 in other regional areas

Age and Residency of Participant The participant must be at least 18 years of age and be an Australian or New Zealand citizen, or a permanent Australian resident
Minimum Deposit Requirement The participant must have a minimum deposit of 2 percent of the purchase price
Place of Residence Requirement The participant must occupy the property as their principal place of residence
First Home Buyer Requirement The participant must not own an interest in any land in Australia or overseas at the time of purchase
Mortgage Serviceability The participant must not be able to service the mortgage for the property purchase without the Government equity contribution but be able to service the mortgage with a participating lender with the Government equity contribution

Ongoing Obligations

Throughout the duration of the scheme, to maintain eligibility, participants must ensure they meet the responsibilities required under the three below categories:

Annual Review Each year following the property purchase, participants are required to complete an annual review and provide supporting information to ensure their continued eligibility for the shared equity scheme
Maintenance and Improvement of Property Participants are required to maintain their property and keep things in good working order. 

Any modifications or renovations affecting the future sale price of the property must be first approved by the government

Responsibility for Property Costs Property costs such as council rates, body corporate fees, water, electricity, gas etc. and home loan repayments are the responsibility of the participant

It’s important to note if a participant no longer meets the eligibility criteria, they will be required to begin repayment of the Government’s equity contribution. In the event this is required, Revenue NSW will work with participants in meeting this obligation.

For further details on the scheme and to assess any specific applicability to your particular situation, it’s recommended that you speak with your tax agent or investment adviser.

Why Vogue Homes

We hope this blog has been informative and helpful and will assist in starting your home-building journey on the right foot. If you have any further questions don’t hesitate to contact the experts here at Vogue Homes. We have over 38 years of experience in the building industry, during which time we’ve helped countless first home buyers achieve their building dreams. We specialise in House and Land Packages throughout a number of affordable and attractive locations in NSW.

When you come to us, we’ll take the time and effort to understand your unique needs, and then present a suitable building solution that will meet your lifestyle and abide by your budget considerations.For any of your First Home Buyer needs, why not contact us today.