Buying extra shares in your home

As your circumstances change, you may wish to purchase additional shares in your home.

The department will need to assess your eligibility to purchase additional shares in your property or to move to full ownership.

What does the application process involve?

The application process to purchase additional shares involves an assessment of your current financial circumstances. This includes:

• your gross weekly income/s
• the amount you have repaid on your current share
• any extra cash you wish to contribute as extra deposit
• the department's current three year fixed interest rate
• the current market value of your home
• the current market value of improvements you have made to your home
• any other outstanding financial commitments you may have.

When the department has received this information, an assessment will be conducted to determine whether you are eligible to purchase additional shares and if so, the number you can buy.

You will need to have a minimum of $2,000 equity in your home to proceed with the purchase of additional shares.

What options are available?

Following the assessment of your application, the following options may be available to you:

1. Increase the number of shares you are buying by a minimum of 5%.
2. Move to full ownership via a first mortgage.

How is the property valued?

To determine the cost of any additional shares to be purchased, the current market value of your property must be established. The department's aim is to establish a fair and equitable market value for the property (ie. a price that could realistically obtain a sale within three months).

Two independent valuers will be engaged for this purpose. The valuers will contact you to organise a time to access the property and to provide you with the opportunity to be present during the inspection.

What valuation is used?

The current market value of the property, and the value of any improvements, is based on the average of the two valuations.

Where two valuations on the same property differ by more than 15%, a third valuation is to be arranged through the Australian Property Institute Incorporated (API). The third valuation is binding.

What about home improvements I have made?

If you have made improvements to your home, you will be entitled to receive the benefit that these improvements have made to the value of your home. This will be in the form of a credit, equivalent to the corresponding increase in the value of the department's share.

Any improvements you have made to your home since it was last valued, should be listed in the appropriate section of the application form. The valuer will then establish two valuations for the property; one with the improvements included and the other without improvements. Work that is considered maintenance will not be included as improvements.

Can I move to full ownership?

As a result of your application, you may be eligible to move to full ownership with a Queensland Housing Finance Loan. The department will advise you if you are eligible for this option when the assessment has taken place.

See Queensland Housing Finance Loan for more information about this option.

No application fees

There are no loan application fees for Rental Purchase Plan clients applying for a Queensland Housing Finance Loan.

What should I do now?

For more information or an application to purchase additional shares, contact the department.