House equity

Tasmania Share Ownership Scheme Explained

Joining a growing list of shared ownership schemes popping up in Australia, Tasmania’s MyHome scheme is designed to help residents enter the property market sooner by reducing the upfront costs they face.

How does MyHome work?

MyHome allows you to share the cost of buying a home with the Tasmanian Government. As long as you and the home you are buying meet the eligibility criteria, the Housing Director will help reduce the initial costs by making a substantial capital contribution.

If you plan to purchase a new home or house and land combination, the capital contribution will be up to a maximum of $200,000 or 40% of the purchase price (whichever is less).

If you plan to purchase an existing home, the capital contribution will be up to a maximum of $150,000 or 30% of the purchase price (whichever is less).

Importantly, you will have to repay the housing manager’s share of the property within 30 years. This can be done by making additional contributions over time or by selling the house and using the proceeds from the sale.

Currently, Bank of us is the only lender participating in the MyHome program. If you are considering applying, be sure to browse the Bank of us home loans currently available.

Who is eligible for MyHome?

To be eligible for MyHome, you must:

  • Not own or have an interest in any other property (other than land you may want to build on under the program)
  • Not be an undischarged bankrupt or discharged from bankruptcy in the three years preceding the application
  • Do not owe money to Housing Tasmania
  • Not have received prior assistance from the Homeownership Assistance Program, Streets Ahead or HomeShare
  • Be able to pay all related legal and settlement fees
  • Think of the house you are buying as your primary residence.

What are the income requirements?

Income requirements for MyHome vary depending on your household type (i.e. number of applicants and number of children you have). The following table provides a breakdown:

Household type Gross income limit (per week) Gross income cap (per year)
1 adult, 0 child $1,683 $87,509
1 adult, 1 child $1,935 $100,636
1 adult, 2 children $2,072 $107,754
1 adult, 3 children $2,458 $127,821
1 adult, 4 children or more $2,846 $147,990
2 adults, 0 children $1,935 $100,636
2 adults, 1 child $2,323 $120,802
2 adults, 2 children $2,711 $140,970
2 adults, 3 children $3,099 $161,138
2 adults, 4 children or more $3,485 $181,205

What are the asset requirements?

There aren’t just caps on how much you can earn to qualify for the MyHome program; your total assets will also be taken into account. According to the Tasmanian government website, your total assets should not exceed $105,800. This includes:

  • Lump sum payments (excluding allowances)
  • Net fixed assets of a company
  • Funds received from superannuation and stocks, bonds and investments.

Some people will be exempt from both the income and wealth tests. These include:

  • Current tenants in Housing Tasmania properties
  • Those who qualify for the Tasmanian Government FHOG
  • First-time homebuyers who purchase an existing home and qualify for the first-time homebuyer stamp duty concession.

ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate shown is for a secured loan with monthly principal and interest repayments of $150,000 over 25 years.

Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

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