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 monthly loan repayments.	The Shared Equity Option is aimed at customers who want to: buy or build a home as your principal place of residence refinance an existing home loan Attributes of customers who may choose to utilise the Shared Equity Option include borrowers who: 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. Is there a maximum loan size for the Shared Equity Option? Yes, $200,000 maximum loan size. Is there a purchase price limit for the Shared Equity Option? Yes, a maximum purchase price limit of $675,000 applies 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. Other restrictions include: Customers must reside in the property and not own other property Customers may retain up to $40,000 of personal savings 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	HomeStart is required to be the first mortgagee on all properties used as security for HomeStart loans. The following conditions apply: Net household income limit applicable: $100,000 Maximum retained savings: $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 Combined total of all loans not to exceed $750,000 Refer to the Fact Sheet for full terms and conditions.	Availability of home loan products: HomeStart Home Loan Graduate Loan Low Deposit Loan Availability of additional / deposit and fee assistance products: Starter Loan Origination channels: 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
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 8th January 2025. R/21/1254676 [v14]

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.

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