Shared Equity

A shared equity arrangement is when a third party (most likely the lender or the government) takes out a stake in your home at the time you buy it. This will can help to bring your overall loan (and loan repayments) down.

For example, if you purchase a $400,000 home with 25% shared equity, you will only make repayments on a $300,000 loan (minus any deposit you paid up front). Keep in mind that you are still required to pay 100% of the deposit, stamp duty (if applicable), council fees and any other costs associated with the home.

When it comes to selling your home, your equity partner (the lender) receives their share back plus a share of any increase in capital value (if the property has risen in value).