Erin Bell experienced repeated difficulties over six months while attempting to purchase a home through the Tasmanian government's MyHome scheme. The scheme involves the government contributing up to 30% for existing homes or 40% for new builds, with the government's share to be repaid at current market value within 30 years.
Application Hurdles
Bell's initial application was declined because she had a boyfriend, despite not sharing finances or living together. Bank of us, the scheme's sole lender, initially required her boyfriend to be listed. After Bell contacted Homes Tasmania, the scheme's administrator, Bank of us reinstated her as a single applicant.
Property Acquisition Challenges
Bank of us approved Bell for a $440,000 home, but suitable properties in Hobart were scarce, representing only 4.4% of sales under that price by September last year. Sellers were also reportedly deterred by the scheme's approximately 90-day processing time. Bell withdrew an offer on a property after discovering severe structural issues, which would not meet Homes Tasmania's satisfactory building inspection requirement.
New Build Valuation Issues
Bell then pursued building a new home with Creative Homes Hobart, with a quote of $506,000 for a house and land package. After Bell paid a non-refundable deposit, an independent valuer organized by Bank of us valued the property $31,000 cheaper, deeming it "not satisfactory." Creative Homes Hobart director Greg Rothacker criticized the valuation, stating the home could not be built at cost for the assessed price. The valuer maintained its adherence to industry-standard methodology, basing market value on recent sales and property specifications, not contract price changes without physical property alterations.
Scheme's Wider Context
Bell ultimately abandoned the process, expressing doubts about the scheme's functionality. Creative Homes Hobart reported that most MyHome customer inquiries did not advance.
Homes Tasmania and Bank of us cited privacy for not commenting on Bell's specific case. Bank of us head of lending Phil Kitto stated that all loan applications are rigorously assessed, including relationship status verification. Homes Tasmania noted that APRA regulates lending and Bank of us manages the application process, including household income limits.
Despite challenges, Homes Tasmania states the MyHome scheme is "very successful," having facilitated 956 property purchases by late November, 624 of which were existing homes. The Housing Industry Association (HIA) acknowledged the program's contribution to affordability but highlighted concerns from its members regarding lengthy approval times and unrealistic valuations. The HIA warned that these barriers could deter builders from engaging with MyHome in the future.
Bank of us, which has exclusive lending rights for the scheme, offers MyHome loans at a variable interest rate of 6.11%, higher than its other home loans. A 0.35% interest rate discount was introduced following customer feedback, applicable to clients with solid repayment history after three years.