A Concessionary Purchase is when you purchase a property for less than it’s market value, this can also be referred to as a purchase under value.

The most common acceptable scenarios when completing a concessionary purchase:

  1. You are purchasing a property from your parents and they ‘gift’ the equity to you. (Your parents must declare it is a gift with no repayments and that they do not want to retain an interest in your property).
  2. You are purchasing a property you have rented from your landlord. (You must have rented the property for at least 12 months before this will be allowed).
  3. You are an employee purchasing a property from your employer.

When completing a concessionary purchase, usually the lender will take the difference between your purchase price and the property’s market value and use this as your deposit meaning you may not need to put down any additional deposit yourself.

Important Notes:

Not all lenders allow concessionary purchases. If this is a scenario you are thinking of exploring, please contact us in the first instance to confirm your eligibility.