AU Australia property term
Shared Equity Scheme
Australia-wide
Plain-English definition
An ownership arrangement in which a buyer and an equity provider each hold an economic share in the home, reducing the buyer's required mortgage.
Why this matters to a foreign buyer
The provider may share future gains or losses and impose owner-occupancy, refinancing, renovation and sale rules. Read the co-ownership documents and exit formula, not just the reduced deposit headline.
Shared equity is a general co-ownership model in which a buyer and an equity provider each hold an economic interest in a home. It can reduce the buyer’s mortgage, but the provider usually shares future value changes and has rights under the scheme documents.
The reduced loan is not a free contribution
The provider’s contribution normally represents an ownership or economic share. When the home is sold or the buyer purchases additional equity, the amount due may depend on the property’s value rather than the original dollar contribution.
Rules differ between schemes
Income limits, price caps, owner-occupancy, renovations, refinancing, repayment and sale rules are scheme-specific. A general shared-equity definition should not be used as the terms of a particular product.
How this differs from Keystart
Keystart’s Shared Ownership Home Loan is a specific Western Australian product involving the Housing Authority. Other state and federal shared-equity programs have their own eligibility and exit rules.
Frequently asked questions
Does shared equity mean shared occupancy?
No. The buyer normally occupies the home; the equity provider holds an economic or ownership share rather than living in the property.
Is every shared equity scheme a Keystart loan?
No. Keystart is one specific WA product. Shared equity is the broader type of arrangement.
For step-by-step Perth and WA guides, visit Property Learning Hub.