Important Information
Target Market Determination - Shared Equity Option

Target Market Determination - Shared Equity Option

Target Market	The Shared Equity Option is a shared appreciation loan designed to increase a customer's purchasing power without increasing their maximum loan repayments. The Shared Equity Option can be used to help customers buy or build in an increased range of suburbs, to assist in purchasing a property that better suits their needs or help them stay in their own homes when circumstances change.	The Shared Equity Option is ideal for borrowers who want to: buy an established home; construct a home; buy a newly completed home; or refinance an existing home loan
Conditions	Customers must meet the requirements of either the HomeStart Home Loan, Graduate Loan or Low Deposit Loan. No interest is payable on the Shared Equity Option. Instead, HomeStart will share in the gain or loss in the property value when you sell your home. Note: if you refinance, HomeStart will share in the property valuation gain, but not share in any loss. The property must be owner occupied by the applicant Customers may not own other property Customers may retain up to $25,000 of personal savings
Restrictions	HomeStart is required to be the first mortgagee on all properties used as security for HomeStart loans. Maximum LVR: combined Shared Equity Option and HomeStart Home Loan, Graduate Loan or Low Deposit Loan must not exceed $850,000 Net household income limit applicable: $100,000 Maximum retained savings: $25,000 Maximum loan: 25% of the purchase price or property valuation, whichever is lower, up to a maximum of $200,000. The Shared Equity Option cannot be greater than the HomeStart Home Loan, Graduate Loan or Low Deposit Loan amount Minimum loan: 5% of the purchase price or property valuation, whichever is lower	Availability of Primary products: HomeStart Home Loan Graduate Loan Low Deposit Loan (established property only) Availability of Secondary / Deposit and Fee Assistance products: Starter Loan Wyatt Loan If for the purpose of refinance, applicants must have minimum equity of 10% at settlement. Origination channels: HomeStart Finance Accredited Brokers (Accredited Brokers can refer applicant to HomeStart Finance)
Circumstances when TMD no longer appropriate	Product has been removed from distribution Review trigger event occurs HomeStart has been notified of a significant dealing event
Review period	Initial review – 3 months from date of first issue Periodic review - biennial from initial review (or earlier if product altered)
Complaint notification	www.homestart.com.au/feedback
DDO Reporting	DDOreporting@homestart.com.au Distributors will report if they become aware of a significant dealing event in relation to this TMD, within 10 business days.
Identification information	Effective Date 20 October 2023. R/21/1254676

Important Information about TMD’s

A TMD is not intended to provide you with financial advice.

The information in a TMD does not take into account your individual objectives, financial situation or needs and before making any decision you should refer the relevant Terms & Conditions and Fees & Charges information and other supplementary documents, such as the Key Fact Sheet to consider whether the product is appropriate for you.

If you are looking to report information to HomeStart in relation to our product Target Market Determinations, you can email us at DDOreporting@homestart.com.au.

Download PDF version