The NSW government announced a new scheme on Sunday that will allow older singles as well as frontline workers to buy their homes with just a two per cent deposit.
The innovative $780m shared equity scheme will allow 3000 buyers a year to enter the market with just two per cent of the property’s total value.
The scheme will look to benefit thousands of frontline workers and older singles and to help further, the state government will cover an equity share of up to 40 per cent of the property price for a new home, while 30 per cent for an existing property.
It’s a part of the NSW government’s $2.8b housing package that will unveil in the state budget on Tuesday.
The scheme has an eligibility criterion, which the mentioned people have to fulfil. For singles, an annual gross income should be less than $90,000 to be a part of the scheme, while for couples, the annual gross income should be less than $120,000.
The maximum value for a property should be $950,000 in Sydney and other regional centres.
Whereas, property prices will be capped at $600,000 if the property is outside of the Sydney area.
NSW Premier Dominic Perrottet said the scheme will make happy to thousands of homebuyers who are looking to get one at this time.
“This is really innovative, at least now when interest rates are kept on surging, affording a house is a challenging task, so to make this easy this opportunity will definitely help thousands of people across the state,” Mr. Perrottet said.
“We want to make sure you have that opportunity. We know home ownership is crucial to growing wealth, to growing the opportunity that people right across our state deserve.
NSW Treasurer Matt Kean said the scheme is perfectly designed for those who are still struggling to buy their first home. “This is all about helping and fulfilling their dreams,” Mr. Kean said.
