South Australia is expanding programs it hopes will help young people in valuable industries buy homes. Photo: SA Housing Trust.
The re-elected South Australian Government is extending low-deposit loans to provide more dwellings for potential homeowners.
Changes include significant increases to the household income threshold for the Advantage Loan and Starter Loan customers up to $110,000, and extending the HomeStart Graduate Loan to include police and firefighters.
The Graduate Loan is also now open to technical college graduates, giving young South Australians who build the state’s homes a chance to own one.
“Whether it’s a graduate coming out of tech college, a firefighter protecting our suburbs, or a young family stretching to meet upfront costs, this expansion is about removing barriers and giving people a real shot at home ownership,” SA Treasurer Tom Koutsantonis said.
“These are practical changes that will make a real difference for South Australian families trying to get their foot in the door.”
This loan scheme was already open to ambulance officers and other South Australians with Certificate III qualifications. It is designed to allow more applicants to enter the housing market with as little as a 2 per cent deposit.
Applicants can now save up to $25,500 on their deposit for a property worth up to $850,000 compared with a standard deposit of 5 per cent, giving people of less means greater access to the market.
The Starter Loan is an interest- and repayment-free scheme, for seven years, of up to $10,000 to help low-income buyers with the upfront costs of buying a home. Another scheme, the Advantage Loan, allows customers to borrow more to increase their budget without additional monthly repayments.
Previous eligibility requirements had a household income limit of $85,000 for the Advantage Loan, while the Starter Loan had a singles limit of $75,000 or $100,000 for a household.
The new changes mean the threshold for both loans has been lifted to $110,000 for individuals and households.
“We took to last month’s election a plan to make it easier for young, hardworking South Australians to buy their own home,” Minister for Housing and Urban Development Nick Champion said.
“We are wasting no time in making this plan a reality.”
