Shared Equity Scheme NSW: Eligibility, Benefits and How to Apply

What Is the Shared Equity Scheme in NSW?

The Shared Equity Scheme (NSW) is a state government initiative to make home ownership more achievable for eligible buyers. Under this program, officially called the Shared Equity Home Buyer Helper, the NSW Government becomes a co-owner of your property by contributing a significant share of the purchase price:

• Up to 40% for a new home
• Up to 30% for an existing home

You own the remaining share, live in the property as your principal place of residence, and take out a home loan for only your portion.

Key points to understand

• The government’s contribution is rent-free and interest-free.
• You don’t need to repay the government’s share unless you choose to.
• If you sell the property, the government receives the same percentage of the sale price that it originally contributed.
• You can buy out their share over time, giving you full ownership when finances allow.

Example

Sarah, a single parent in Sydney, purchases a $900,000 townhouse.

• NSW Government contributes 40% ($360,000).
• Sarah contributes a 2% deposit ($18,000).
• Her home loan covers the remaining $522,000.

This setup slashes Sarah’s borrowing costs, avoids Lenders Mortgage Insurance (LMI), and helps her secure a home much sooner than saving a 20% deposit.

Why the Scheme Exists

Property prices in NSW—especially in Sydney, Newcastle, and coastal hubs—have risen sharply. Many households earning $80,000–$120,000 per year struggle to save a typical 20% deposit. The Shared Equity Scheme reduces this barrier, opening doors for first-home buyers and essential workers to stay in the communities they serve.

Who Is Eligible for the Shared Equity Home Buyer Helper in NSW?

The Shared Equity Home Buyer Helper isn’t open to everyone—it’s designed to help buyers who might otherwise struggle to enter the NSW property market. To qualify in 2025, you’ll generally need to meet the following criteria:

Core Eligibility Requirements

• Residency and Age
  • Must be an Australian citizen or permanent resident
  • At least 18 years old
• Income Limits
  • Singles: annual taxable income up to $93,200
  • Couples: combined annual taxable income up to $124,200
• Ownership Status
  • Must not currently own property in Australia or overseas
• Deposit Requirement
  • Minimum 2% deposit of the purchase price
• Property Type & Location
  • New homes (up to 40% government contribution) or existing homes (up to 30%)
  • Property must be within NSW price caps:
    • Sydney, Newcastle, Lake Macquarie: up to $950,000
    • Regional NSW: up to $600,000
• Target Groups
  • Single parents with dependent children
  • Older singles aged 50+
  • Key workers such as nurses, midwives, paramedics, police officers, teachers, and early childhood educators

Benefits of the Shared Equity Scheme (NSW)

The Shared Equity Scheme NSW can help you buy a home sooner, avoid paying up to $30,000 in LMI, and cut your monthly repayments compared to a standard loan. Here’s why many eligible buyers are considering this first home buyer assistance NSW option in 2025.

1. Buy Sooner with a Smaller Deposit

   You only need a 2% deposit to get started—far less than the 5–20% usually required for a standard home loan.

2. No Lenders Mortgage Insurance (LMI)

   Avoid LMI entirely, which can save you thousands. For first-home buyers, LMI is often one of the biggest hidden costs.

3. Reduced Loan Amount and Lower Monthly Repayments

   With the government covering up to 40% of a new home’s price or 30% of an existing home, your mortgage is smaller—meaning lower interest costs and often a better chance of approval with participating banks.

4. Flexibility to Buy Out the Government Share

   You’re not locked into co-ownership forever. You can buy back the government’s equity over time as your income grows, or after an inheritance or refinance. When you’re ready, we can help you refinance your home loan for the right structure.

5. Live in the Community You Serve

   For key workers like nurses, teachers, and police officers, this scheme can make it possible to own a home closer to work instead of commuting long distances.

Comparison: Shared Equity Scheme vs Standard Home Loan

How Much Can You Borrow Under the Shared Equity Scheme (NSW)?

Your borrowing potential under the Shared Equity Scheme NSW depends on your income, the scheme’s price caps, and whether you’re buying a new or existing home.

NSW Property Price Caps for 2025

• Sydney, Newcastle, Lake Macquarie: up to $950,000
• Other regional NSW areas: up to $600,000

Government Contribution

• New home: Up to 40% of the purchase price
• Existing home: Up to 30% of the purchase price

Example Home Purchase Breakdown

With a smaller loan, your monthly repayments are lower and your borrowing power increases. You can often buy in a better suburb or secure a property that might be out of reach with a traditional mortgage.

Want a personalised estimate? Try our Borrowing Power Calculator to see how much you could borrow—no credit check required.

Participating Lenders and How Stryve Finance Helps

Not every bank or lender in Australia offers the Shared Equity Scheme NSW. At present, only a small panel of participating lenders is approved to work with the NSW Government, including:

• Bendigo Bank
• Unity Bank

While this list may grow, working with a mortgage broker in NSW who knows each lender’s policies is the fastest way to avoid roadblocks and secure your spot in the scheme.

Why Use Stryve Finance for the Shared Equity Home Buyer Helper?

We don’t just find you a loan—we guide you through the entire process, from eligibility checks to settlement. Here’s how we help:

1. Eligibility Check: We confirm you meet all government and lender criteria before you apply.
2. Lender Comparison: We compare interest rates, fees, and key policy differences between participating lenders.
3. Application Management: We coordinate your applications with the NSW Government and your chosen lender.
4. Ongoing Advice: We help you plan when and how to buy back the government’s share so you can reach full ownership sooner.

“I thought buying in Sydney was impossible until Stryve Finance showed me the Shared Equity Scheme. They handled everything — I just had to pick the house.” - Emma, Nurse, Marrickville

NSW Shared Equity Scheme vs Federal Help to Buy Scheme

It’s easy to mix up the Shared Equity Scheme NSW with the Federal Help to Buy scheme—both involve the government contributing toward your home purchase. However, they’re separate programs with different rules, income caps, and property limits.

Key Differences at a Glance

Which One Is Right for You?

• If you live in NSW and meet the Shared Equity Home Buyer Helper criteria, you could benefit from a state-level program tailored to local property prices.
• If you don’t meet NSW’s income or price caps—or want access to a broader range of lenders—the Federal Help to Buy scheme may be worth exploring.

FAQs About the Shared Equity Scheme (NSW)

1. Is the Shared Equity Scheme in NSW interest-free?

Yes. The NSW Government’s contribution is both rent-free and interest-free. You only repay your home loan portion and can buy out the government’s share over time if you choose.

2. Can I buy out the government’s share?

Absolutely. You can purchase the government’s equity in your property at market value in whole or in instalments, giving you flexibility to achieve 100% ownership when your finances allow.

3. What happens if I sell my home?

On sale, the government receives the same percentage of the sale price as it originally contributed. For example, if it contributed 30% to the purchase, it will receive 30% of the sale proceeds.

4. Can I renovate my property?

Yes, but you may need lender approval for significant renovations—especially if you plan to refinance or borrow additional funds. Cosmetic updates and general maintenance are generally fine.

Planning major upgrades? A renovation loan can fund improvements while keeping your repayments manageable.

5. How many places are available each year?

The NSW Government has capped the scheme at 3,000 places annually, so applying early is crucial if you’re eligible.

6. Which banks offer the Shared Equity Scheme in NSW?

Currently, the two participating lenders are Bendigo Bank and Unity Bank, but the list may expand. Working with a mortgage broker helps ensure you’re matched with the right lender.

Step-by-Step: How to Apply Through Stryve Finance

Applying for the Shared Equity Scheme in NSW can feel overwhelming if you do it alone. With only 3,000 places available each year and strict criteria, every step counts. Here’s how Stryve Finance makes it simple:

1. Eligibility Check

   We confirm whether you meet the Shared Equity Home Buyer Helper income, deposit, and property requirements—and check if you also qualify for the Federal Help to Buy scheme.

2. Lender Matching

   As part of our comparison process, we review interest rates and loan types so you know whether a fixed, variable, or split loan works best for your budget.

3. Application Preparation

   We prepare your documentation and manage both the lender and the NSW Government applications so there are no delays or mistakes.

4. Property Selection

   We guide you through finding a property within the scheme’s price caps, ensuring you meet location and valuation requirements.

5. Approval & Settlement

   Once approved, we coordinate the settlement process—working closely with your solicitor or conveyancer—so you can move in without stress.

6. Long-Term Ownership Planning

   We help you create a roadmap to buy back the government’s share when it suits you—through refinancing, savings, or windfalls.

Your First Home Could Be Closer Than You Think

The Shared Equity Scheme NSW has already helped thousands buy a home with as little as a 2% deposit, no LMI, lower repayments, and the flexibility to live where you want.

Not eligible for the scheme? Our property investment loans can help you build wealth through real estate in NSW.

At Stryve Finance, we’re more than mortgage brokers—we’re partners in turning the dream of home ownership into reality.