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Loan to buy a share of your public housing home (Pathways Shared Equity Loan)

If you want to buy your public housing home but can’t afford a loan to buy all of it, you may be able to get a government loan to buy a share of it.

A Pathways Shared Equity Loan, if you’re eligible for one, allows you to borrow money to buy 60% or more of your home.

This reduces the size of your mortgage, making it easier for you to repay it.

And you don’t have to pay us rent for your private use of our share of the property.

The loan is available only if your home is available for purchase (not all government properties are for sale).

Other eligibility criteria apply.

Who can apply

To be eligible for this loan, you must:

  • be 18 years of age or older
  • be a citizen or permanent resident of Australia
  • be an existing public housing tenant
  • be living in the property you want to buy
  • have been employed the past 1+ year (permanent), 2+ years (casual), or 3+ years (self-employed)
  • not own or part-own another property
  • be unable to afford to buy 100% of the home through a standard home loan
  • intend to live in the home for the duration of the shared equity agreement
  • be able to repay the loan without hardship, including having:
    • a regular savings history
    • a good credit history
    • no significant debts
    • no outstanding debt with us (e.g. previous loan or rental debt).

Loan at a glance

Basics

Loan amount Up to the maximum amount you can afford to borrow, as calculated by us.
Loan term Depends on circumstances (e.g. the age you intend to retire); maximum term is 30 years.
Repayment type Principal and interest
Interest rate type Variable or 3-year fixed
Loan security We take a registered mortgage over your share of the property.

Rates and fees

Application fee $0
Minimum deposit $2,000
Interest rates (p.a.) To find out what our current rates are, call us on 1300 654 322 or email us.
Repayment amount The amount will be the lesser of 30% of your gross (before tax) monthly income; your disposable (after tax and other expenses) monthly income; or the minimum required to repay the loan within the loan term.
Account keeping fees $0

Direct debit dishonour fee

 $19.58
Fixed rate change fee If you have a fixed rate and reset it before the end of the 3-year period, you may have to pay the equivalent of up to 3 months of interest.

Features and benefits

Repayment frequency Flexible (e.g. weekly, fortnightly, monthly)
Extra repayments allowed Yes
Lender’s mortgage insurance Not required
Hardship assistance Yes—if you qualify
Conveyancing rebate $250—if your loan application is approved.
Financial advice rebate $250—if your loan application is approved.
Offset account No
Redraw facility No
Increase loan Yes—but only to purchase more shares in your home (not for home renovations or other large purchases).
Line of credit No  

How the loan works

1. We lend you money to buy a share of your home

If you’re eligible, we lend you money to buy a share of your home—as much as we calculate you can afford to repay without hardship.

The minimum share you must buy is 60%. If we calculate you can afford a bigger share, you’ll be required to buy it.

The price will be based on an independent valuation of your home at the time. We’ll pay for the valuation.

2. You repay the loan

You repay the loan in regular instalments.

You don’t have to pay us rent for your private use of our share of the property.

However, you must pay home insurance, council rates, utility charges, and maintenance and repairs for the whole property (your share and ours).

3. You buy more shares or sell your home, if you wish

Over time, you may decide to buy additional shares of your home—5% or more per purchase.

You can do this by renegotiating your loan with us (if your financial circumstances allow) or paying cash.

The price will be based on an independent valuation of your home at the time.

We may give you a credit for any structural improvements you paid for that increased the property’s value.

Alternatively, you may decide to sell your home (and claim your share of the sale proceeds).

Upfront costs you must pay

Be aware that, when buying a share of your home, you’ll also need to pay these third-party costs:

  • building inspection
  • conveyancing fees
  • transfer and mortgage registration fees
  • transfer duty (stamp duty)
  • home insurance.

Some of these costs vary depending on the price of your home, location and other factors.

Your solicitor can give you an estimate of these costs based on your circumstances.

Rates adjustment

At settlement, you’ll need to reimburse us for any council rates and water charges we’ve pre-paid on your share of the property.

Ongoing costs you must pay

As well as the upfront costs of buying a home, you’ll need to pay ongoing homeownership costs (for the whole property, not just your share). These include:

  • home insurance
  • council rates and utility charges
  • repairs and maintenance.

Call to check your eligibility

To find out whether you’re eligible for a Pathways Shared Equity Loan, call us on:

1300 654 322 (Monday–Friday, 8.30am–4.30pm)

It takes 15–20 minutes for us to confirm your eligibility. You can speed up the process by having information handy about all the applicants’:

  • income
  • savings
  • debts.

What next?

If your property is for sale and we determine you could be eligible for a loan, we’ll send you loan application forms to complete and return to us.

Managing your home loan

Already a Pathways Shared Equity Loan customer? Find out about:

More information

Last updated:
23 April 2025
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