The 3 Biggest HomeStart Mistakes

You get into your home with a small deposit and no LMI — which feels fantastic. Five years later, you’re still paying a much higher interest rate than the banks, and you’ve never switched because it feels too hard.

HomeStart rates are higher than traditional lenders — that’s the trade‑off for lower deposit requirements. But HomeStart is designed as a launchpad, not a destination. Once you get some more equity over time, refinancing becomes possible. On a $450,000 loan, the difference can easily be $200–$400 per month, or $60,000–$120,000 over the life of the loan.

We plan your exit from day one. We set a target equity milestone and actively monitor your position. When you have more equity, we can move you to a lower rate with a traditional lender — where the real savings begin.

You love that your repayments stay the same even when interest rates rise. It feels safe — until you check your loan balance years later and realise it’s gone backwards.

Repayment Safeguard caps repayments based on affordability, not interest rates. If rates rise sharply, your repayments may not even cover the interest. The shortfall gets added to your balance — a process known as negative amortisation.

We explain this clearly before you commit, model different rate scenarios, and build a repayment strategy — including voluntary repayments — so you keep moving forward, even when rates rise.

You qualify for HomeStart, but the borrowing amount falls just short of the property you actually want — and you assume that’s the end of the road.

HomeStart offers additional loans that can be stacked onto your main loan. The Shared Equity Option can boost borrowing power by up to $90,000, and the Starter Loan can cover up to $10,000 of upfront costs — both options many buyers are never told about.

As accredited HomeStart brokers, we know every product in the suite. We structure applications to maximise buying power — and clearly explain the trade‑offs so you can make an informed decision.