Property scheme helping Tasmanians get home loans

More people in Tasmania have been able to take out  to purchase a house for sale following the introduction of a new property scheme, it has been revealed.

According to the Tasmanian government, its HomeShare initiative has proved successful, as it has allowed people to get on the property ladder who may have otherwise not been able to.

It works by enabling prospective home buyers to share the cost and ownership of a property with the Director of Housing.

Therefore, people will be able to reduce the amount of money they require to become property owners and can pay for home loan repayments at a lower cost than their rent.

Minister for Human Services Cassy O'Connor said the initiative also reduces the amount people need for a deposit, meaning that becoming a home owner is not as far out of reach.

"This has changed the lives of many people who thought they would be lifetime renters, but are now home owners," she said.

Ms O'Connor stated that costs can come in at $300 per week, meaning that many who rent homes at the same price could afford to purchase a home loan deal instead.

"Home ownership may be within your reach," she added.

The HomeShare project works by also sharing the responsibility of home ownership with the Director of Housing as well as the cost so that proprietor can obtain an independent building report and financial counselling.

In addition to this, $500 will be given which home buyers can put in  to pay for the cost of conveyance and documents to gain a mortgage.

Ms O'Connor noted that the scheme has proved popular and there are currently 79 HomeShare contracts, while there are also "dozens more in the process of … signing up".

However, the Tasmanian government is attempting to raise this figure further and wants more locals to take advantage of the initiative.

Next month, a meeting will be held on May 3rd 2011 where people can find out more information and whether they are eligible to apply for a HomeShare contract.