The SA government has extended the eligibility of a 2 per cent deposit scheme for first home buyers.
Previously, the 2 per cent deposit loan offered through state-government backed lender, HomeStart, was only available to eligible tertiary education graduates.
Treasurer Stephen Mullighan announced on Monday the scheme would be extended to all first homeowners financing through HomeStart.
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“In the current market where a lot of homebuyers are looking at more than $500,000 to build their new home on a block of land, that can mean years trying to save up for a deposit in excess of $100,000,” Mullighan said.
Through HomeStart a first home buyer purchasing a $500,000 home will need about $10,000 for a deposit.
Homestart is a state government initiative to make home buying more affordable for low-income earners.
Those who are successful for a HomeStart loan don’t need to pay lender’s mortgage insurance — required by other banks if home buyers do not have a 20 per cent deposit.
However the variable and fixed interest rates of HomeStart are higher than major banks.
The 2 per cent deposit scheme can be used in conjunction with a $15,000 first-home owner’s grant offered through the state government.
The South Australia Government also waived stamp duty for all first home buyers buying new homes valued up to $650,000 or vacant land up to $400,000 as part of the 2023-24 State Budget.
Mullighan said combined, these incentives can provide up to $44,580 in savings for new home buyers.
“It has never been a better time to make this decision to get into home ownership,” he said.
