The State Government-backed lender, ‘HomeStart Finance’ has cut the minimum deposit requirement for its Graduate Loan to two per cent.
The Graduate Loan is available to South Australian residents with a Certificate III, IV, Diploma, Bachelor degree or higher qualification.
Announcing the move, Premier, Peter Malinauskas said this was the first time HomeStart had offered a two per cent deposit home loan, which could wipe months off savings plans.
“HomeStart also does not require Lenders Mortgage Insurance if buyers don’t have a 20 per cent deposit, which can cost in excess of $10,000,” Mr Malinauskas said.
“Owning your own home is the great Australian dream, but saving a deposit can be a sticking point, especially with most commercial lenders requiring deposits of up to 20 per cent.”
He said HomeStart’s decision would mean thousands of dollars less in upfront savings, enabling more South Australians to get a foot on the property ladder sooner.
Chief Executive of HomeStart, Andrew Mills said the reduction in the deposit requirement would be life-changing for many South Australians aspiring to buy their own home.
“Many South Australians are struggling to save enough to pay for the ever-growing deposit on a home, particularly from traditional lenders, and rising house prices keep putting home ownership beyond their reach,” Mr Mills said.
“The two per cent Graduate Loan deposit is another way in,” he said.
“HomeStart continues to adapt and innovate to address housing affordability concerns and help more South Australians into their own home sooner.”
HomeStart currently has more than 2,000 Graduate Loans on its books, 619 of them signed in the past financial year.
