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New 2% deposit loan unlocks property market for more first home buyers

By Natalia Petkidis

South Australian first home buyers building a home will save thousands with a new 2 per cent deposit home loan available through HomeStart.

A Labor election commitment, it’s the latest in a suite of measures to help more South Australians enter the property market.

Purchase price20% deposit2% depositSaving
$488,000#$97,600$9,760$87,840
$740,000*$148,000$14,800$133,200
$519,000^$103,800$10,380$93,420

Excluding fees and charges

#median purchase price for a metro property purchased through HomeStart in 2022-23

*median house price in metropolitan Adelaide, Dec 2023

^median price of building a house in metro Adelaide through HomeStart in 2022-23

Eligible buyers will also benefit from the $15,000 first home owners grant and the Malinauskas Government’s abolition of stamp duty for first home buyers on new homes valued up to $650,000 – or vacant land up to $400,000 to build a new home. Combined, these provide up to $44,580 in relief.

Unlike many commercial lenders, HomeStart does not require Lenders Mortgage Insurance if buyers don’t have a 20% deposit which can cost in excess of $10,000.

The new 2 per cent deposit loan is available in metropolitan and selected regional areas.

Homebuyers must purchase a house and land package with one of HomeStart’s selected builder partners and the property must be their primary residence.

Because the new loan is for new builds, it will also boost supply.

Last year’s State Budget featured a $474.7 million housing package to support the delivery of 3,600 new homes over five years and reduce the cost of housing for around another 14,000 new homes.

For more information on the 2 per cent deposit loan including a list of eligible builders, visit https://www.homestart.com.au/learn-more/im/building/house-land-package

Article sourced from premier.sa.gov.au

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