Couple, no dependents

Household income $94,000/year, $18,000 deposit, first home buyers

Alex and Michael want to buy their first home together. They would like to live close to the city and have been struggling to find something they like in the suburbs that the want to live in.

Alex and Michael have recently decided to buy a place together. Together they earn $94,000 per year and have saved up $18,000. They are looking for a home no more than 10 kilometres from the city that will give them an easy commute to work.

HomeSeeker SA has some properties for sale in great suburbs that are only available to eligible buyers under a shared equity arrangement. 

Shared equity home loans allow you to increase your borrowing power, without increasing your home loan repayments. With shared equity, you may be able to buy a home in a better location because the mortgage repayments will be lower. Read more about how shared equity works in our FAQs

Alex and Michael approach HomeStart Finance to discuss if a shared equity loan will work for them. They have some other debts, such as a car loan, which has lead to them being rejected by some lenders due to their capacity to meet home loan repayments.

Through HomeSeeker SA they find a home in an inner west suburb that is advertised at $480,000. They are also eligible for the HomeStart Finance Starter Loan, which contributes up to $10,000 towards fees and charges.

Alex and Michael work out their repayments as follows.

Monthly household income after tax


Home purchase price


Stamp duty + other fees


Borrowed amount ($508,350) less deposit ($18,000), First Home Owner Grant ($15,000) + Starter Loan ($9,750)


Monthly repayments on loan

Monthly repayments on loan using shared equity




This fictional case study is based on real life experiences of home buyers. Before buying a home, it is strongly recommended you seek professional advice on your personal financial circumstances and your ability to pay a mortgage.


As at October 2021