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First Start Shared Equity Agreement (SEA)
17 July 2018
Website – Case Study
How First Start helped Sarah with her home loan deposit
This article is part of a fictional case study series following "Sarah", a typical first home buyer in Victoria.
Sarah is eager to move out of home and establish her independence. She has savings but unfortunately, the deposit required to purchase a home is still out of reach.
Sarah has been talking with friends and relatives regarding her disappointment in the time it is taking to realise her dream of home ownership. During one of these conversations, a friend mentioned Snow Star Credit Union’s, Home First portal and the innovative option of deposit assistance they had read about recently, being the First Start Shared Equity Agreement (SEA).
Sarah quickly researched the First Start Shared Equity Agreement via the Home First portal. Sarah was overjoyed to find that with the assistance of her parents, the Shared Equity Agreement will provide her with access to funds to purchase a property in exchange for her parents receiving a share in the future equity of the property
How does this help Sarah?
First Start provides a win for both parties; Sarah is able to get into the market and own a property sooner and may avoid paying Lenders Mortgage Insurance (LMI), while Sarah’s parents can share in the future equity of the property and help her realise her dream without risking their home, assets and credit rating.
The First Start Shared Equity Agreement is one way for Sarah to receive deposit assistance from her family. Other options include our Family Guarantee.
For more information about your options as a first home buyer or as someone wanting to help a home buyer, call LiveChat to speak with one of our Home Loan experts.
