The proposal would establish a national shared-equity scheme called Help to Buy, which aims to assist people on low-to-moderate incomes purchase a home.

Through the National Housing Finance and Investment Corporation (NHFIC), the Australian Government (the Government) would provide equity of up to:

• 40% of the purchase price for new homes
• 30% of the purchase price for existing homes.

The applicant would be required to have a minimum 2% deposit and finance the remainder of the purchase through a standard home loan with a commercial lender. Applicants would not be required to purchase lenders mortgage insurance or pay rent on the share of the home owned by the Government.

During the loan period, the applicant would be able to purchase equity back from the Government at market value in increments of at least 5%. The Government would recover its equity plus a share of capital gains at the time of sale (or re-financing). In the case of capital losses, the Government would share any losses with the applicant based on their relative equity ownerships. The Government would not claim any share of the value added through home improvements.

Eligible applicants would be required to meet the same property price thresholds required under the New Home Guarantee and have an annual income of no more than $90,000 for individuals or $120,000 for couples. Applicants who exceed these thresholds for 2 consecutive years after acceptance into the scheme would be required to purchase equity back from the Government in part or whole as their circumstances permit.

The scheme would commence 1 January 2023, offering 10,000 places each year.