Rental Purchase Plan
This information is for people who have a Rental Purchase Plan (previously called H.O.M.E. Share) agreement with the Queensland Government. The plan is no longer offered.
The Rental Purchase Plan was offered until 1996; it’s no longer available to new customers.
Under the plan, people unable to afford to buy their rental property could instead buy a share of it (e.g. 30%) using money borrowed from us.
If you’re a Rental Purchase Plan customer, it’s likely you’ve paid out your original loan for your share of the property.
The monthly lease instalments you now pay are for your private use of our share of the property.
We pay for your home building insurance, and you still have the option to buy more shares in your home, which you can sell at any time.
Lease instalment increases and reviews
Each year we increase your monthly lease instalment by $1.
Every 3 years we review your income and other factors to determine your new lease amount.
For example, if your income has increased since the last review, your lease will be increased too.
We notify you in writing of the new lease amount.
Home building insurance
Since January 1996, home building insurance for Rental Purchase Plan customers has been free (we pay for it).
You can either pay for the insurance and get us to refund you, or send us the insurance renewal notice for us to pay it.
You need to pay for your home contents insurance, if you decide to get it.
Though we pay for your home building insurance, you’re responsible for managing the insurance, including ensuring your building is adequately and continuously insured.
Important
Because we have a financial stake in your home, we must be listed as an ‘interested party’ in your home building insurance policy.
If we’re not, it can severely complicate any claim you make for building damage or loss.
Get an insurance refund from us
If you’ve already paid your latest insurance premium, we can refund you. Send us your:
- insurance certificate of currency (which you’ll need to get from your insurer)
- payment receipt for proof of payment
- bank account details—for the refund.
If you’re part of a body corporate, send us a copy of the certificate of currency and proof of the building premium paid.
We’ll then work out the portion relating to your home and refund you directly.
Ask us to pay your insurance
If you’ve received your home insurance renewal notice but have not yet paid the premium, you can forward the notice to us.
The notice must show us the:
- total sum insured
- premium paid
- breakdown of the sum insured for the home building and home contents.
- GST and stamp duty related to the home building premium.
Home improvements
You can make improvements to your home.
However, you must get our approval—as the property’s part-owner—to make any improvements that:
- require local government approval
- involve structural or major changes to the building or surrounding land.
Buying extra shares in your home
If you have the funds, you may be able to buy more shares of your home—1% or more per purchase.
We’ll assess your financial capacity before telling you exactly how may extra shares you could potentially buy.
The price is based on an independent valuation of your home at the time you purchase the additional shares. We’ll pay for the valuation.
If you want to buy our entire share of the property—using your super or an inheritance, for example—you can.
Refinancing your home loan
If you’re paying or have paid off a Rental Purchase Plan (RPP) loan for a share of your property, you may be able to refinance the loan.
The new loan would need to be big enough to:
- pay off any money you still owe on your existing RPP loan
and
- buy our share of the property based on its current market value.
You can refinance your RPP loan through either a private lender (e.g. a bank) or the government’s Queensland Housing Finance Loan.
Selling your home
You can sell your home at any time.
If you’re selling your home, an independent valuer will determine its market value.
When the property is sold, we’ll claim our share of the property’s value, including our share of any increase in the property’s value (capital gain).
Home improvement credit
If you refinance or sell your rental property, we may give you a credit for any structural improvements you’ve paid for that increased the property’s value.
For example, if you own 30% of the property and your improvements increased the property’s value by $15,000, we may credit you our share of the increased value—70%, or $10,500.
The amount by which the improvements increased the property’s value will be determined by an independent valuer.
Regular maintenance and repairs are not considered to be home improvements.
If you vacate the property
One of the conditions of your Rental Purchase Plan agreement is that you must continuously live in the property.
If you move into a nursing home or pass away, for example, you or your next-of-kin will need to let us know.
Our agreement with you will then be terminated and the property sold.
You or—if you’ve passed away—your estate will receive your share of the sale proceeds.
Enduring power of attorney
An enduring power of attorney is a legal document that allows you to appoint someone you know and trust (an ‘attorney’) to make decisions during your lifetime.
If you suffer an illness or accident and are unable to make decisions yourself, your attorney can make them for you.
They can make decisions about financial matters, including selling property, and personal ones, such as where you live.
Read more about power of attorney
More information
For all enquiries or to send us insurance and other documents, please contact us at:
- Phone: 1300 654 322 (Monday–Friday, 8.30am–4.30pm)
- Email: hscsloaninformation@housing.qld.gov.au
- Post:
Loans and Debt Management
Housing and Homelessness Services
Department of Housing and Public Works
GPO Box 690
BRISBANE QLD 4001