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Bendigo and Adelaide Bank announced that it will be offering potential buyers in New South Wales break into the market with as little as 2% deposit under the Shared Equity Home Buyer Helper.
The state’s shared equity scheme is aimed at assisting single parents, older single buyers, and first-time-buyer key workers achieve homeownership by providing equity contribution of up to 40% for new dwellings and 30% for existing dwellings.
With the government’s equity contribution, the potential buyer will only be paying 2% deposit upfront with no requirement of paying for lenders mortgage insurance (LMI).
Participants can make voluntary payments to the state government to increase their equity in the property, but the state will not require repayments on the equity contribution and will not charge rent or interest while the participant remains eligible for the scheme.
More details about the NSW Shared Equity Home Buyer Helper can be found in this guide.
The scheme is commencing on 23 January 2023, and Bendigo and Adelaide Bank will stand as one of the first participating lenders.
Bendigo and Adelaide Bank chief customer officer for consumer banking Richard Fennell said one of the goals of the bank is to help homebuyers not just in New South Wales but also in other markets to achieve homeownership.
“As one of Australia’s largest and most trusted banks, we support any initiative that helps Australians get ahead,” he said.
“We know home ownership is an important enabler of both financial and community security, which is why we are also proud lending partners of the Victorian Homebuyer Fund and Federal Home Guarantee Schemes.”
The bank has over 370,000 customer base in New South Wales, serviced by six corporate branches and 45 community banks across the state.
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Photo by RODNAE Productions on Canva.
Collections: Mortgage News
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