Labor’s shared equity scheme starts next year. How does it work and who is eligible?

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Labor’s shared equity scheme starts next year. How does it work and who is eligible?
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The Albanese government’s program aims to make it easier for people to get a home loan and purchase a property, but it isn’t a magic pudding

There are also caps on the purchase price of the property, which differ depending on the location. For example, homes under $950,000 are eligible in Sydney or a major regional centre in New South Wales. In the rest of NSW, the maximum property price allowed is $750,000.The program is only open to individuals earning up to $90,000 and couples earning $120,000 as a joint income.

Applicants need at least a 2% deposit and must demonstrate they can secure financing for the remainder of the purchase price of the home and pay associated stamp duty costs, as well as rates, body corporate fees and utilities. You will not have to pay the government rent on their equity share.The details are still being worked out.

If your income increases above the eligibility criteria for two years in a row, you may have to pay the government back for its equity stake, depending on the circumstances.

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