Your Rent Proves You Can Afford a Mortgage. Now Let's Get You One.
HomeStart lets South Australians buy with as little as 2% deposit and no Lenders Mortgage Insurance. As accredited HomeStart brokers, we will find the right loan and get you approved.
You Can Afford the Repayments. You Just Can't Save Fast Enough to Prove It.
You are paying $500, $600, $700 a week in rent. You have never missed a payment. But every time you look at how much you have saved for a deposit, the goal posts have moved again.
The banks want 10% or 20% deposit. On a $500,000 home, that is $50,000 to $100,000. And while you are saving, prices keep climbing.
HomeStart was created by the SA Government specifically for people in your position: reliable income, clean credit history, but not enough saved for a traditional deposit.
And as accredited HomeStart brokers, we know exactly how to get you through the door.
What Makes HomeStart Different From Every Other Lender
As Little as 2% Deposit
For a $500,000 home, that is as little as $10,000 instead of the $50,000 to $100,000 a bank might require. If you hold a Certificate III or higher, you qualify for the 2% deposit. Without a qualification, you can start from 5%.
No Lenders Mortgage Insurance
With a traditional lender, anything less than 20% deposit means paying thousands in LMI. HomeStart waives this entirely. That is a saving of $8,000 to $15,000 or more on a typical SA home purchase.
Repayment Safeguard
Your repayments are based on what you can afford, not just interest rates. If rates go up, your repayments stay the same for 12 months (your loan term adjusts instead). This makes budgeting predictable and safe.
The Graduate Advantage
If you hold a Certificate III or higher qualification, you qualify for even lower deposit requirements: 2% to buy an existing home, or 5% to build. This includes trade qualifications, diplomas and degrees.
HomeStart Loan Products We Can Help You Access
HomeStart offers several loan types that can be combined to maximise your buying power. Here is an overview of the key products.
The core home loan product. Buy an existing home with as little as 5% deposit (2% with a Certificate III or higher), or build with 8% deposit (5% for graduates). Variable, fixed or split rate options available. No LMI.
For buyers with a smaller deposit who want to buy an established home. Start from just 3% deposit. Variable, fixed or split rate options. Maximum combined borrowing (home loan plus additional loans) must not exceed $750,000.
An additional loan of 5% to 25% of the property value that increases your buying power without increasing your monthly repayments. HomeStart shares in the gain or loss when you sell. No interest charged on this portion. Available in metro Adelaide and some regional centres.
A secondary loan of up to $10,000 to help cover upfront costs like stamp duty, legal fees and moving costs. No repayments and no interest for seven years. Available to eligible first home buyers.
Build your own home with no repayments for the first 12 months or until your home is complete (whichever comes first). Choose your own licensed builder, or go with a HomeStart partner builder for a fixed-price package. First home buyers building may also be eligible for stamp duty relief.
Not sure which combination suits you? That is exactly what we work out with you. Get your free assessment and we will map out the best structure for your situation.
HomeStart Is a Brilliant Tool. But It Is Not for Everyone.
We believe in giving you the full picture, not just the highlights. Here is our honest assessment of who HomeStart works best for, and where the trade-offs sit.
HomeStart is a great fit if you...
- Are paying high rent and cannot save a deposit fast enough to keep up with rising prices
- Have stable income but do not meet standard bank criteria (e.g. you rely on certain Centrelink benefits)
- Are a graduate or hold a trade qualification and want to buy your first home sooner
- Want the security of knowing your repayments will not jump if rates rise
Things you should know...
- Interest rates are higher than traditional banks. You are paying for the privilege of a low deposit.
- The Repayment Safeguard means if rates rise sharply, your loan balance could increase rather than decrease over time.
- The application process is thorough. Expect them to go through your bank statements in detail.
- SA only. You must be buying or building in South Australia, and the property must be owner-occupied.
The Lender Edge "Two-Year Flip": Use HomeStart as a Launchpad, Not a Destination
We do not recommend staying with HomeStart for 30 years. The smart approach is to use it as a stepping stone to get you into the market, then move you to a better rate once you have built enough equity.
Get In
Use the low deposit to stop paying rent and start building equity. Every dollar of your repayment is now working for you instead of your landlord.
Build Equity
Treat the higher interest rate as a temporary cost of entry. Make extra repayments where you can. As your property value grows, so does your equity position.
Refinance Out
Once you reach 20% equity (through repayments plus property growth), we move you to a traditional lender at a much lower interest rate. That is when the real savings kick in.
Ready to See If You Qualify for HomeStart?
Fill in your details and we will be in touch within 24 hours for a free, no-obligation chat about your HomeStart options.
- Find out if you meet HomeStart's eligibility criteria
- Understand how much you could borrow
- See which loan products and add-ons suit your situation
- Get a clear picture of your deposit and upfront costs
- Learn about our "Two-Year Flip" refinance strategy
Check If You Qualify
We will be in touch within 24 hours.
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Questions People Ask About HomeStart
It depends on the product and your qualifications. The standard HomeStart Loan requires 5% deposit to buy (or 8% to build). If you hold a Certificate III or higher, you can buy with as little as 2% deposit. The Low Deposit Loan starts from 3%. We will help you work out the minimum for your situation.
Yes, typically. You are paying a premium for the low deposit and no LMI. However, when you factor in the thousands you save on LMI and the fact that you stop paying rent sooner, the overall cost of waiting to save a bigger deposit for a bank loan is often higher. We run the numbers with you so you can see both scenarios.
No. HomeStart loans are for owner-occupiers only. You must live in the property as your principal place of residence. If you are looking for investment property finance, we can help you with that through other lenders on our panel.
The combined total of a HomeStart home loan and any additional loans (Starter Loan, Shared Equity Option) must not exceed $750,000. How much you can actually borrow within that limit depends on your income, expenses and deposit. We will help you work out your borrowing capacity.
No. Our service is completely free to you. HomeStart pays us when your loan settles. There are no upfront fees, no hidden charges, and no obligation if you decide not to proceed.
That is a big part of what we do. Once you have built enough equity (usually 20%), we can refinance you to a traditional lender at a significantly lower interest rate. We monitor your position and let you know when the timing is right. If you have a Shared Equity Option, HomeStart will only share in any gain in property value when you refinance, not any loss.