Target Market
The Shared Equity Option is a shared appreciation loan designed to increase a customer’s purchasing power without increasing their monthly loan repayments.
- buy or build a home as your principal place of residence
- refinance an existing home loan
- want to borrow more without increasing their repayments
- want to increase the range of suburbs to buy or build their home in
- want to purchase a property that better suits their needs
Eligibility criteria & restrictions
Customers must meet the eligibility criteria and conditions of either the HomeStart Home Loan, Graduate Loan or Low Deposit Loan.
This loan has certain eligibility criteria for you to consider:
- Is there a household income limit for the Shared Equity Option? Yes, $100,000 after tax.
- Can I use the Shared Equity Option to purchase a rental property? No, HomeStart does not lend for investment property purchases. You must occupy the home as your principal place of residence and not own any other property.
- Can I use the Shared Equity Option if my main loan is with another lender? No, the Shared Equity Option is only available to customers who have a home loan with HomeStart.
- Is there a purchase price limit for the Shared Equity Option? Yes, a maximum purchase price limit of $675,000 applies.
Other restrictions include:
- Customers must reside in the property and not own other property
- Customers may retain up to $40,000 of personal savings at settlement
No interest is payable on the Shared Equity Option. Instead, HomeStart will share in the increase or decrease in the property value when you sell your home. If you refinance, HomeStart will share in the property valuation gain, but not share in any loss.
Conditions
- Net household income limit applicable: $100,000
- Maximum retained savings at settlement: $40,000
- Maximum purchase price: $675,000
- 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
- Advantage Loan
- Shared Equity Option
- Starter Loan
- HomeStart
- Accredited Brokers
Risks
Home loans come with risks. To help you understand your risks, we recommend that you seek independent financial advice or legal advice before taking out a home loan. Some of the risks specific to the Shared Equity Option may include:
- Difficulties refinancing due to increased repayment required when refinancing a home loan with a Shared Equity Option
- Sharing in the equity growth of your property with HomeStart means that you will receive less of the sale price when it comes time to sell
For more information
For more information about the Shared Equity Option, call us on 1300 636 878 and one of our dedicated Home Loan Specialists can help answer your questions. Alternatively, visit our website to find more information about this specific home loan product.
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-and-complaints
DDO reporting
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 14 February 2025. R/21/1254676[v15]
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.