What Are Approved Shared Equity Schemes in NSW? A Guide for Home Buyers

What is a Shared Equity Scheme?

A shared equity scheme is an arrangement where you purchase a home alongside an approved equity partner.

Rather than lending you money like a bank, the equity partner contributes part of the purchase price and owns a percentage of the property. You remain the owner-occupier, live in the home, and can gradually purchase additional shares over time if you choose.

Think of it as sharing the ownership—not sharing the home.

How Does Shared Equity Work?

Under an approved shared equity arrangement:

• You purchase and live in the home.
• An approved equity partner contributes towards the purchase price.
• You must own at least 20% of the property from the beginning.
• The equity partner shares in any increase or decrease in the property's value based on their ownership percentage.
• You have the option to buy back more of the property over time until you become the sole owner. This process is commonly known as staircasing.

For many buyers, this can mean:

• Borrowing less from the bank.
• Lower mortgage repayments.
• A more achievable path into home ownership.

Who Can Be an Approved Equity Partner?

Not every organisation can participate in an approved shared equity scheme.

In NSW, approved equity partners may include:

• NSW Land and Housing Corporation
• Registered Community Housing Providers
• Other organisations or entities approved under NSW legislation

Each shared equity arrangement must also receive approval from the Chief Commissioner of State Revenue before it qualifies as an approved scheme

Can You Still Receive First Home Buyer Benefits?

Yes.

One of the biggest advantages of an approved shared equity scheme is that it doesn't automatically prevent eligible buyers from accessing NSW first home buyer incentives.

Subject to meeting the normal eligibility requirements, buyers may still qualify for benefits such as:

• The First Home Owner Grant (New Homes).
• The First Home Buyers Assistance Scheme (stamp duty exemption or concession).
• Certain transfer duty exemptions when purchasing additional ownership shares from the equity partner.
• Potential principal place of residence land tax exemptions where applicable.

This makes approved shared equity arrangements different from many private co-ownership agreements.

What Types of Properties Can Be Purchased?

Approved shared equity schemes can apply to a variety of residential property types, including:

• Brand-new homes
• Existing homes
• House and land packages
• Off-the-plan properties
• Vacant land where you intend to build a home

For buyers looking to build with Domaine Homes, a house and land package may be eligible if it forms part of an approved shared equity arrangement and all eligibility requirements are met.

What Protections Are in Place for Buyers?

Approved schemes must include important safeguards designed to protect home buyers.

These typically include:

The right to live in your home

Although an equity partner owns a share of the property, you retain the exclusive right to occupy the home.

The ability to increase your ownership

You can generally purchase additional shares over time until you fully own the property.

Fair selling arrangements

If you decide to sell, the agreement must clearly outline how proceeds are divided between you and the equity partner.

Dispute resolution

Approved schemes must include processes for resolving disagreements fairly.

These protections are intended to provide buyers with greater confidence when entering a shared ownership arrangement.

How Is Stamp Duty Calculated?

Transfer duty (commonly known as stamp duty) is generally assessed on the value of the entire property—not just the share you initially purchase.

However, if you're buying through an approved shared equity scheme, you may still qualify for first home buyer exemptions or concessions if you're eligible.

In addition, when you purchase further ownership shares from the approved equity partner in the future, transfer duty may not apply in certain circumstances.

Is Shared Equity Right for You?

A shared equity arrangement may suit buyers who:

• Have a stable income but limited savings.
• Want to reduce the amount they need to borrow.
• Are looking for an alternative pathway into home ownership.
• Intend to live in the property as their home.

Because every buyer's financial situation is different, it's important to speak with a qualified mortgage broker or financial adviser to understand whether a shared equity arrangement aligns with your long-term goals.

Building Your First Home with Domaine Homes

At Domaine Homes, we know that every first home buyer's journey is different.

Whether you're purchasing a house and land package, exploring government grants or looking into alternative ownership options such as shared equity, our experienced team can help connect you with trusted finance specialists who understand the latest home ownership initiatives.

We'll help you understand your options so you can make an informed decision about your future home.

Frequently Asked Questions

Is a shared equity scheme the same as a home loan?

No. A home loan involves borrowing money from a lender. With shared equity, another party contributes towards the purchase price in exchange for an ownership share of the property.

Can I eventually own 100% of the property?

In approved shared equity schemes, buyers are generally able to purchase additional ownership shares over time until they become the sole owner.

Can I still receive the First Home Owner Grant?

Potentially, yes. Approved shared equity arrangements are designed so eligible buyers may still qualify for first home buyer grants and concessions, provided they meet the normal eligibility requirements.

Are approved shared equity schemes currently available?

As of the latest Revenue NSW guidance, there are currently no shared equity schemes approved by the Chief Commissioner of State Revenue. However, the legislative framework remains in place for future approved schemes. Buyers interested in shared equity should keep an eye on updates from Revenue NSW and discuss alternative pathways with a finance specialist.

Start Your Home Ownership Journey

If you're exploring different ways to make home ownership more achievable, it's worth understanding every option available to you.

At Domaine Homes, we've helped thousands of Australians build their first home and navigate government grants, finance options and home buying incentives.

Speak with our team today to discover the pathway that best suits your budget, lifestyle and home ownership goals.