Rising interest rates continue to shrink the borrowing capacity of those looking to buy a home, but a little-known government program provides a novel solution. In July 2022, the MyHome program expanded its eligibility criteria to “encourage more Tasmanians to buy or build their own home,” as declared in a press release from Guy Barnett, Minister for State Development, Construction and Housing. With the government now offering to fund up to $200,000 of eligible purchases.
Available exclusively through Tasmanian-owned Bank of Us, the MyHome shared equity scheme offers an opportunity for buyers to secure a property with as little as a 2% deposit. Eligibility is determined by two factors, your personal circumstances such as age, income and family size, and property criteria such as price, age and size of the dwelling.
Those eligible for the program can receive the following:
up to a maximum of $200,000 or 40 per cent (whichever is the lesser amount) of the purchase price for purchasers of new homes or house and land packages
up to a maximum of $150,000 or 30 per cent (whichever is the lesser amount) of the purchase price for purchasers of existing homes.
If you are interested in buying an existing home there is a property price cap of $600,000 under MyHome, but there is no cap on a new dwelling.
Under the scheme, the government will own the agreed share of your home which you must pay off within 30 years.This can be done either by buying out the government’s share at an agreed price or by selling the home.
Full details of the scheme and application process are available at the Bank of Us website and at their branches around the state.