The Tasmanian State Government has dumped a couple of banks while adding a local one to deliver its shared equity program.
Tasmanian-based Bank of Us is set to replace Bendigo and Adelaide Bank in delivering Tasmania's 'Housing Market Entry Program' from 1 July, formerly called HomeShare.
Applicants who have pre-approved finance through the program with Bendigo and Adelaide Bank can still access the finance until 31 December.
This comes after the government doubled the program to a maximum of $200,000 or 40% of the purchase price of the home in March, applying for new builds, first home buyers, and downsizers.
Federal Labor recently announced a 'Help to Buy' scheme similar to Tasmania's program, offering 10,000 homebuyers the opportunity to enter the property market with as little as a 2% deposit without needing to pay lenders mortgage insurance (LMI).
Guy Barnett, Tasmanian Minister for State Development, Construction and Housing said the shared equity scheme will help people achieve home ownership by reducing the costs of buying a home, because the costs are shared with the Director of Housing.
"Assistance will include a maximum contribution of $200,000, or 40%, of the purchase price of a new home or house and land package, and up to a maximum of $150,000, or 30%, for the purchase price of an existing home," Minister Barnett said.
"This new program will not impact existing HomeShare participants who are currently funded by the Bendigo and Adelaide Bank."
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Lender | |||||||||||||
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| Variable | More details | ||||||||||||
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Basic Home Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.
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