What is HomeShare?

HomeShare is a Tasmania Government initiative designed to help low and moderate income Tasmanians to buy their own homes.

The Government understands that often there is a significant gap between what people can afford to pay for home ownership, given what they earn, and what they must pay for housing, given what it costs.

An alternative pathway to home ownership involves shared ownership. By sharing ownership with another person, in this case the Director of Housing, you may be able to buy a home that previously you could not afford.

How does HomeShare work?

You and the Director of Housing buy the home together. The amount of Director’s share will depend on the purchase price and the size of the loan you can afford to service.

However the Director’s share will be capped at 25% of the price up to a maximum of $50,000.

Where the loan amount would require the applicant to take out mortgage insurance the Director would increase the equity share up to a maximum $50,000 to avoid that cost.

No rent or interest is charged on the Director’s share. However you must pay rates, insurance and maintain the home.

What are the benefits of HomeShare?

The benefits of buying a home through HomeShare include:

• The initial cost of entering home ownership is lower as you are required to fund only your share in the home
• The ongoing cost of home ownership is lower, as you must make repayments on a loan only for your share in the property
• As the Director of Housing will co-own the house, you are not subject to many of the uncertainties that may arise if you co-owned the house with another person
• For homes purchased from the Director of Housing, you have the option of obtaining an independent building report paid for by the Director
• You may obtain independent financial counseling, paid for by the Director
• You control the home, subject to your obligations under the HomeShare agreement
• You will receive $500 towards the costs of conveyance and preparation of the mortgage and associated documentation
• When you buy the Director of Housing’s share, the value will be calculated on the market value at that time. Any approved improvements you have made to the property since the initial purchase will be taken into consideration.

Who qualifies for HomeShare?

To be eligible for HomeShare you must:

• Satisfy the income and asset limits for HomeShare
• Be an Australian citizen or permanent resident, living in Tasmania
• Be a natural person at least 18 years old
• Be able to provide a minimum deposit as follows (the First Home Owner Grant can be used towards the deposit ):
  Home purchase: The greater of $3,000 and 5% of the purchase price.
  House/land package: The greater of $3,000 and 7% of the cost of house construction
  
• Not own or have an interest in any other real property (land)
• Not be an undischarged bankrupt or discharged from bankruptcy within three years before the date of application
• Be free of debt to Housing Tasmania
• Not have received previous assistance under Streets Ahead Assistance Program or HOAP home loan
• Be able to pay legal and establishment fees
• Live in the house as your principal place of residence.

What type of home can be bought under HomeShare?

Under HomeShare you can buy a newly constructed home – that is, a house which has never been previously occupied as a residence, including occupation by the builder, a tenant or other occupant and the purchase must be the first sale of the house.

How to get a home loan for HomeShare?

The Bendigo and Adelaide Bank Limited finances all HomeShare loans. Your eligibility for HomeShare and the amount you can borrow will be worked out by Tassie Home Loans Pty Ltd.

You will be able to borrow an amount related to your assessed income(s) and that will allow for the loan to be repaid in full over a maximum of 30 years. Any existing commitments you have such as credit/store cards or car/personal loans may affect the amount you are able to borrow.

Your loan repayments will depend on the amount you borrow, the interest rate applicable at the time and the loan term you choose.

What other costs are there?

Buying a home involves paying taxes (duty) and a range of fees. The duty payable will be assessed by the State Revenue Office.

Also you will need to have a solicitor or a conveyance firm to process the buying of your share. You will receive $500 assistance towards those costs.