Is Shared Equity the Right Choice for me?

30 April 2019

At Now Living Realty, we believe everyone deserves to find their dream home. But for some, there may be obstacles standing between them and home ownership, starting with obtaining the loan. That’s when shared equity comes in.

The smarter way to get into your own home, shared equity means you don’t need a huge income or have to wait years and years to save a deposit. For those wanting to get into a home of their own now, read on for our definitive guide to SharedStart home loans.


What is Shared Equity?

Shared Home Equity opportunities are available as part of the Opening Doors to Affordable Living initiative (including the SharedStart home loan). A first of its kind initiative in Australia, the aim is to reduce the upfront costs of buying a property and lower the monthly loan repayment. As a result, it has already delivered 20,000 new housing opportunities that might not have been possible without shared ownership.

So, how does it work? In the simplest terms, the State Government contributes up to 30% of the cost of your own home. Acting as a silent partner in the transaction, Keystart (the State Government’s lending arm) pays part of the purchase price to help you into your home sooner. In turn, this reduces borrowing costs to make home ownership more affordable.

Here’s a snapshot of what you can expect when you sign up for a shared equity scheme like the SharedStart Home Loan:


What are the Benefits of Shared Equity?

Some of the benefits of shared equity include:

– Assists in reducing the home ownership costs by up to 30% for eligible applicants

– Low deposit of $2,000 or 2% of the purchase price (whichever is greater) for first home buyers

– Deposit of $2,000 or 2% of the purchase price plus stamp duty and fees for non-first home buyers

– No savings history, lenders mortgage insurance or monthly account keeping fees required

– First home buyers can use the First Home Owners Grant towards the deposit and apply for a grant from the Home Buyers Assistance

– Range of properties all around Western Australia in new and established suburbs you actually want to live

– Down the track, if your circumstances change and you want to buy 100% of your home or you want to sell and move into a bigger home, you can


Who is the Ideal Candidate for Shared Ownership?

The Keystart SharedStart home loan was designed to help low to moderate income earners for first and subsequent homebuyers. Depending on your income and household size, the Housing Authority will co-own up to 30% of a property with you. To give you a better idea of the average income brackets for each home loan, here’s some stats for a standard home loan vs. a SharedStart shared equity home loan:


– Average income: $55,674

– Average loan amount: $233,337

– Average purchase price*: $351,674

Standard Keystart Full Ownership:

– Average income: $87,501

– Average loan amount: $366,465

– Average purchase price*: $378,870

*Based on the full value of the property (both the Housing Authority and SharedStart client component). All figures based on 2016/2017 financial year.

So, how do I apply? To apply for shared ownership, buyers need to see if they qualify first. The SharedStart home loan requires:

– A 2% deposit and no genuine savings

– No lenders mortgage insurance

– Maximum qualifying income $70,000 for singles and $90,000 for couples and families

Still not sure if you meet all the requirements? You can find out using Keystart’s online qualifying tool.


How Now Living Realty can Help

Now Living Realty work with The Loan Company* and Keystart^ to sell both full and shared ownership homes. With homes all over the Perth Metropolitan area currently advertised under shared ownership and priced from $147,000 at 70% Share**, getting into a home of your own has never been easier thanks to Now Living Realty.


If you need more information on how shared ownership works, our sales consultants would be more than happy to talk you through it. Contact us today or make a shared ownership enquiry directly.

*The above is provided for general informational purposes only and is not intended as financial advice. For more information on this, you can visit the government website directly at’