Hundreds more South Australian low and moderate-income earners will be supported to achieve the great Australian dream of home ownership, thanks to a further $3 million expansion of the Marshall Government’s ‘Starter Loan’ scheme.
The scheme – administered through State Government-owned HomeStart Finance – provides an interest-free loan of up to $10,000 for five years to assist borrowers cover upfront ‘costs’ associated with buying or building a new home, such as stamp duty, fees and charges.
This is in addition to the State Government’s $15,000 First Home Owner Grant, and the Federal Government’s $25,000 HomeBuilder Grant, for eligible applicants.
Under changes announced by Treasurer Rob Lucas today, eligibility for the Starter Loan is being expanded to include singles with a net household income of less than $65,000 (up from $52,000) and couples with a net household income of less than $90,000 (up from $60,000).
State Government funding for the program has also been increased by a further $3 million – now totalling $10 million over seven years.
Treasurer Rob Lucas said as many as 1,000 loans could now be offered to assist South Australians into home ownership by 2026.
“This is a significant initiative that will help ensure the great Australian dream of home ownership is a reality for many more South Australians,” said Mr Lucas.
“The scheme is already proving successful, with 144 Starter Loans settled since its launch in September last year, and we would expect to see increased demand as a result of the expansion of the eligibility criteria to include moderate-income earners.
“We know how hard it can be for many people to save for a deposit and other upfront costs associated with a home loan, let alone in the current COVID-19 climate, and we are pleased to be able to help.
“This will also have positive flow-on benefits for the local housing industry more broadly as more South Australians enter the property market, either through existing homes or new home builds.”
For more information, or to apply for the Starter Loan, please visit: https://www.homestart.com.au/