Grattan’s shared equity scheme won’t solve affordability crisis

Monday 21 February 2022

The Grattan Institute has proposed a shared equity scheme for low-income householders, which would be aimed at addressing what the think tank says is a “national crisis” in housing affordability.

The $220 million scheme would see the National Housing Finance & Investment Corporation (NHFIC) take a 30% stake in a person’s house purchase, with the Corporation taking the same proportion of any capital gains when the house is eventually sold. The prospective buyer would still need to contribute a 5% deposit, and then borrow the remainder from the bank.

Here’s an extract of Grattan’s proposed scheme:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.