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New home ownership program to help low-income earners - TAS

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New home ownership program to help low-income earners - TAS

August 2007

TAS Parliamentary Secretary to the Premier, Graeme Sturges, said the State Government’s latest affordable housing scheme is a step closer to fruition, with tenders advertised in today’s newspapers for the new Home Ownership Assistance Program Shared Equity Scheme.

Expressions of interest are invited from organisations interested in providing mortgage finance to low-to-moderate income earners.

Mr Sturges said the Shared Equity Scheme would broaden the range of affordable housing options for Tasmanians by helping people to buy existing homes or house and land packages from Housing Tasmania.

“Under the new scheme, eligible purchasers will only be required to finance 75% of the total purchase price of their new home,” Mr Sturges said.

“The Director of Housing will retain the remaining 25 per cent of the property as shared equity.

“Owners purchasing through this program will have all the normal rights of a home owner, but the Director will retain a 25 per cent share of the property.

“This will, on average, deliver a saving of $54 per week on loan repayments, making home ownership achievable for more Tasmanians.

“The owner will be able to sell and repay the share in the future, or they can opt to buy the remaining 25 per cent when their finances allow.

“It is expected that 60 home purchase opportunities will be made available over the 2007/08 financial year.

“This scheme has been introduced in direct response to the property boom and the inability of low-to-moderate income earners to break into the market.

“This is about making home ownership more affordable and broadening the range of affordable housing options available for Tasmanians.

“The shared equity scheme will complement the existing rental options provided by the State Government through Housing Tasmania and the new Tasmanian Affordable Housing Limited.

“The scheme will be administered by Housing Tasmania and is expected to be operating by December 2007,” Mr Sturges said.

Organisations interested in providing mortgage finance through the Shared Equity Scheme have until 2pm, Wednesday 15 August 2007, to submit their applications.

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