| Overview |
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flagFounded: 1989 |
businessOwned by: Government of South Australia |
monetization_onFunded by: Government of South Australia |
account_balanceLender type: Non-bank lender |
HomeStart Finance is a South Australian lender that is 100% focused on providing home loans for South Australians only. It is set up by the State Government of South Australia and aims to make homeownership a reality for more people in more ways. It is popular for low-deposit options and secondary loans to cover the deposits and other upfront costs. It doesn’t charge LMI for any type of loan. It does only owner-occupied loans.
What Home Loan Types Does HomeStart Have?
For any loan, you can choose a variable, fixed or split interest rate. Fixed rates are available for terms of 1-3 years.Low-Deposit Loans (Primary Loans)
Graduate Loan- Available to graduates with a Certificate III or higher qualification
- 2% deposit plus upfront costs to buy an established home, and a 5% deposit plus upfront costs to build a new home
- Redraw available if you have a variable loan and have made voluntary loan repayments
- Good option for first-home buyers and next home buyers
- 3% deposit plus upfront costs to buy an established property
- Not available for construction
- 5% deposit plus upfront costs to buy, and 8% deposit plus upfront costs to build
- You can buy an existing home, build, refinance, or buy land now and build later
Borrowing Boost Loans (Secondary Loans)
Shared Equity Option- Available if you meet the requirements of a HomeStart primary loan
- Can borrow up to 25% of the purchase price as an interest-free and repayment-free loan
- Cannot be greater than the primary loan amount
- Not available for land-only purchases
- Additional loan of up to $70,000 for people earning under $65,000 a year
- Combined with HomeStart, Graduate or Low-Deposit loan to boost your borrowing power
- No additional repayments
- Provides up to $10,000 to help you get into your home sooner
- Available if you qualify for a HomeStart primary loan, and have a net household income of less than $65,000 for singles and $90,000 for couples
- Offers a five-year period free of interest and repayments
- Provides up to $12,000 to help you get started sooner
- Available if you’ve lived in South Australia for at least five years, and have a net household income of less than $47,500 a year
- Offers an interest and repayment free period of five years
- Available if you are 60 or over and own your home
- The older you are, the more you can borrow
- Available to fund house-related expenses and non-house related expenses
- Any non-housing related expenses cannot exceed $20,000 in a single transaction
- How much can you borrow?
- How large a deposit do you need?
- What are your repayments?
- Low-deposit loans
- Secondary loans to boost borrowing power, without increasing your repayments
- Variable, fixed or split interest rates
- Voluntary repayments with no extra fees (capped at $10,000 a year for fixed rates)
- Option to redraw additional repayments
- Repayment holidays
- Access to equity to renovate or make home improvements
- No Lenders Mortgage Insurance (LMI)
- No account-keeping fees
- Extremely procedural
- Strict lending criteria
- Interest rates and fees are comparatively higher
- Not accepted if you have a low income or a bad credit history
- Owner-occupier loans only
- Buyer has to be South Australian and property has to be in South Australia
- Non-resident mortgages not available
- Not as good for temporary employees and self-employed borrowers
- Have a regular income
- Be over 18 years of age
- Be an Australian permanent resident or citizen
- Be purchasing, building or refinancing a home to be owner-occupied within South Australia
- Not in undischarged bankruptcy
- Salary and any other income
- Liabilities, including loans, credit cards and any other debts
- Details about your expenses
Unlock Your Home’s Equity (Equity Access Loans)
Seniors Equity LoanYou can check HomeStart’s calculators to determine:
How Do HomeStart’s Home Loans Compare?
Pros
Cons
