How does the First Home Partner shared equity scheme work?

Short answer: Government buys up to 25% with you. You pay 4.5% annual rent on their share. Can buy them out later.

What this actually means in plain English

The government buys up to 25% of your house with you. You own the rest. You pay rent on their share at 4.5% per year. When you sell, they get 25% of the sale price. You can buy out their share later. It helps if you can afford mortgage repayments but cannot save a big deposit.

Key Facts

Government contribution: up to 25% of purchase price
You pay annual rent of 4.5% on government share
When you sell, government gets 25% of sale price
You can buy out government share over time

Example

House Price: $800,000

Your Share: $600,000 (75%)

Government Share: $200,000 (25%)

Annual Rent: $9,000 (4.5% of $200,000)

Monthly Rent: $750

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