Shared Equity Explained: Making Home Ownership More Accessible

For many South Australians, saving a full deposit and securing a home loan can feel like the biggest barrier to getting into the market.

Shared equity schemes are designed to help bridge that gap — reducing the upfront cost of buying a home by sharing part of the purchase price with government partners. In simple terms, you buy a home sooner, with a smaller loan and lower entry cost, while the government holds a proportional share in the property.

At Lanser, we’re seeing more buyers take advantage of these programs to move into new communities earlier than they thought possible.

With shared equity, you still live in and own your home, but a percentage of the purchase price is funded by a government scheme.

That means:

• A smaller deposit is required (often as low as 2%)
• Your mortgage is reduced
• The government holds an equity share in the property
• When you sell or refinance, that share is repaid based on the property’s value at the time

The exact percentage varies depending on the scheme.

The South Australian Government’s primary shared equity initiative operates through HomeStart Finance, the state’s government-backed lender. The Shared Equity Option allows eligible buyers to borrow between 5% and 25% of a property’s purchase price (up to a maximum of $200,000) as a separate, interest-free, and repayment-free loan. 

• Lower Repayments: By splitting the purchase, your primary mortgage is smaller, which drastically reduces your ongoing monthly repayments.
• Zero Interest: No interest is charged on the equity loan portion, and you are not required to make regular repayments on it while you live in the property.
• Repayment Triggers: You only pay back the equity share when you sell the property, refinance with another lender, or choose to voluntarily pay it out.
• Shared Capital: Because the government holds an equity stake, they will share in a proportional percentage of any gains (or losses) in the property’s value when it is sold or refinanced.

To qualify for a HomeStart Shared Equity loan, you generally must meet the following requirements:

• Be at least 18 years old.
• Be an Australian citizen or permanent resident.
• Live in the property as your primary residence.
• Have a maximum gross household income, typically capped at $120,000 per year (though this can vary depending on specific loan products and household type). 

• Available primarily for properties located within metropolitan South Australia and select regional locations.
• The maximum property purchase price is capped at $750,000.
• The Shared Equity Option cannot be used for purchasing a unit or apartment in a building that exceeds three levels (including the ground floor).

Applications for the Shared Equity Option are processed directly through HomeStart Finance.

Alongside state-based support, the Australian Government has introduced a national shared equity program called Help to Buy.

The Australian Government's Help to Buy scheme is a shared equity initiative designed to lower the barriers to homeownership. It allows eligible buyers to purchase a home with just a 2% minimum deposit and a smaller mortgage, while the government contributes up to 40% of the purchase price.

• Government Equity Contribution: The federal government contributes up to 30% of the purchase price for an existing home or up to 40% for a new home (or land-and-build package).
• Shared Ownership: You own the home and live in it, but the government holds a financial interest equivalent to its contribution.
• No Rent or Interest: You do not pay rent on the portion of the home the government owns, and there are no ongoing interest charges on the government's equity share. 

• Reduced Mortgage: Because the government pays for up to 40% of the home, your required mortgage is significantly smaller.
• No Lenders Mortgage Insurance (LMI): The government's equity contribution removes the need to pay LMI, saving buyers thousands of dollars at purchase.
• More Options: The government's contribution allows you to consider properties you may not have been able to afford otherwise.

To qualify for the scheme, applicants must generally meet the following requirements:

• Income Limits: Applicants must fall within specific income thresholds.
• Citizenship: You must be an Australian citizen, aged 18 or older.
• Property Ownership: You must be an Australian resident and typically cannot currently own any other land or residential property.
• Location & Price Caps: The property must be your principal place of residence and fall within the Help to Buy Property Price Caps tailored to your specific suburb and state. 

You can live in the property indefinitely without needing to pay the government back immediately. However, the equity must be settled eventually: 

• When you sell: When you sell the home, the government will get its same equity percentage back from the sale proceeds (meaning you share any capital gains or losses).
• Voluntary repayments: You can incrementally buy back the government’s share over time using your savings or by refinancing your mortgage.

Applications are administered by Housing Australia. Initially, home loans through the scheme are offered by participating lenders like the Commonwealth Bank of Australia (CBA) and Bank Australia, with more lenders participating.

Check your personal eligibility and search local property caps on the Australian Government First Home Buyers Portal. 

Across both schemes, the goal is the same: make it easier to get into a home sooner.

Depending on eligibility, shared equity can:

• Reduce the deposit required from ~20% to as low as 2–5%
• Reduce borrowing by up to 25–40%
• Lower upfront barriers like LMI
• Open up access to new homes in well-located communities

For many first home buyers, this can mean the difference between waiting years — or moving in much sooner.

Shared equity isn’t the right fit for everyone, and it’s important to understand how the government’s share impacts your long-term equity position.

We always recommend speaking with:

• A mortgage broker or lender
• HomeStart or the relevant scheme provider
• A financial adviser (if appropriate)

They can help you understand what’s possible based on your personal circumstances.

At Lanser, we’re committed to helping more South Australians find a pathway into home ownership — whether through shared equity schemes, government incentives, or thoughtfully designed, attainable housing options.

If you’d like to learn more about upcoming land releases or home opportunities, our team is here to help guide you through what’s available.

Important information

The information in this article is general in nature and is provided for educational purposes only. It does not constitute financial, legal, or lending advice. Shared equity schemes are subject to eligibility criteria, income and property price limits, and government policy settings which may change over time. Availability of schemes may also vary depending on location and individual circumstances. We recommend speaking with a qualified mortgage broker, lender, or financial adviser, or contacting the relevant scheme provider (such as HomeStart or the Australian Government Help to Buy program) to confirm your eligibility and understand how shared equity may apply to your situation.