What is the Pathways Shared Equity Loan?
If you are a Department of Housing and Public Works tenant, and the property you are renting is assessed as available for purchase, the Pathways Shared Equity Loan may enable you to enter into a partnership with the department to buy a percentage of the house you are currently renting.
The initial repayments on the loan will be no more than 35% of your gross monthly income. You will be responsible for all the local authority rates, maintenance costs and the cost of insuring your home, but you will not be charged any rent for the department's share of the property. Over time, through the partnership, you may choose to buy more shares of the property and become a full home owner.
What is shared equity?
Through a shared equity program, a homebuyer applies for a loan to purchase a share in their home, entering into an arrangement with another party which owns the remaining share.
Shared equity loans are designed to assist people who are unable to afford the repayments on a mortgage loan for the full purchase price of a property, but whose incomes do allow them to repay a smaller loan.
Am I eligible?
To be eligible for the Pathways Shared Equity Loan:
- you must be a Queensland Department of Housing and Public Works tenant at the time of application
- you must be a permanent resident of Australia
- you cannot own or part-own another property at the time of application
- you cannot be in a position where the department considers that you could buy 100% of your rental home with a standard mortgage loan
- you should not have other significant debts that will prevent you from repaying the shared equity loan. The manner in which you repaid other loans will also be considered in determining your eligibility.
- you must demonstrate that you are able to afford home purchase without hardship, taking into account your costs of living and the ongoing costs of home ownership
- you must be purchasing the property as your home and undertake to live in the home for the term of the shared equity agreement; and
- you must not have an outstanding debt with the department.
To talk to a loan officer about your eligibility to buy a share in your home, contact the Housing Services Loan Information Hotline on 1300 654 322 (toll free). The hotline is open Monday to Friday between 8.30am and 5.00pm.