Shared Equity Option

Boost your home buying budget by up to 25%.

Share equity to increase your budget

If it seems like buying a home is just out of reach, our Shared Equity Option can help. With this additional loan, your borrowing budget may increase by up to 25%. It could be the boost you need to buy or build your own home.

Loan features

Borrow up to 25% of the purchase price

With the Shared Equity Option, we can lend you between 5% and 25% of the property value or purchase price, whichever is lower. You become the owner of the home, but you share some of its value with HomeStart.

You can apply for this additional loan when you take out your home loan with HomeStart.


Repay at your pace

The Shared Equity Option can increase your options without adding to your monthly repayments. However, you can choose to make voluntary repayments of $10,000 or more at any time. This would reduce HomeStart’s share in the value of your property. To work out the new percentage, we’d need to arrange a property valuation.

You’ll repay this loan when you:

  • sell your property, or
  • refinance with another lender, or
  • voluntarily pay out the Shared Equity Option.

Until then, you’ll continue making the repayments that we’ve set for your home loan.


Interest-free borrowing

We don’t charge interest on the shared equity part of your loan. Instead, when you sell your property, we'll share in any gain or loss in property value. 

For example, if we lend you 20% of the purchase price with this loan, our share in the value of your property will be 20%. 


HomeStart shares the gain and the loss

When you sell your home, HomeStart will share in a portion of the gain or loss in property value. If you decide to refinance, HomeStart will only share in any gain in property value.


Example

In the below scenario, by taking a Shared Equity Option, the purchase price of your home could increase by $100,000* without increasing your monthly repayments.

  • Purchase price without the Shared Equity Option

    $450,000

    Monthly repayment is $2,594

  • Purchase price with 25% Shared Equity Option

    $550,000

    Monthly repayment is $2,362

This scenario is provided for illustrative purposes only. 

*Based on 98% LVR. Maximum HomeStart Loan may vary as it is based on individual circumstances. Shared Equity Option is available in metro Adelaide and some regional centres. Shared Equity Option must not exceed 25% of the lessor of the purchase price or property valuation. Shared Equity Option is not available for land-only purchases.


Check if you're eligible

To be eligible for the Shared Equity Option, you’ll need to:

  • Have your home loan with HomeStart and meet all other eligibility criteria

  • Have a net household income of up to $100,000 per year, after tax

  • Buy or build a home to live in within South Australia. A maximum purchase price limit of $675,000 applies.

  • Not have an Advantage Loan with us

  • Have no more than $40,000 in retained savings at settlement

  • Not own other property

Have questions? We're here to help!

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Resources

  • Shared Equity Loan Fact Sheet

    Read our fact sheet for an overview of key information about this product and other important information.

    Download

  • Shared Equity Loan Key Features

    Read this fact sheet for a summary of the key features of this product.

    Download

  • Target Market Determination

    View the Target Market Determination (TMD) which describes who this product may be appropriate for. A TMD is not intended to provide you with financial advice.

    See more

See our full Rates & Fees.

Rates & Fees

R/24/459455

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