1,394 first home buyers secure loans
Home lender HomeStart has supported nearly 1,400 first home buyers purchase property in South Australia last financial year.
HomeStart’s latest annual report shows that in the 2022-23 financial year, it provided 1,394 loans to first home buyers, the highest number for a decade
The number of loans to lower-income first home buyers, many of whom may not qualify for a loan from traditional lenders, represents a 38% increase on the previous year.
HomeStart is owned by the South Australia government and the growing number of home loans it provides comes despite rising interest rates and property prices.
Borrowers often ask brokers for HomeStart loans
Bernie Lewis Home Loans’ mortgage broker Andrew Stoodley (pictured above left) said HomeStart's low-deposit loans, which didn’t charge lenders’ mortgage insurance, were fairly well known in South Australia.
“Borrowers often come to brokers for a HomeStart loan specifically, with the belief that it is the only option for them due to their income or deposit,” Stoodley said. “Sometimes however we can fit them with a more traditional lender that they may not have considered.”
Stoodley said due to the tough economic times, HomeStart was a very popular option and as a result the organisation was feeling the pressure when it came to assessment times.
According to Stoodley, HomeStart’s repayment safeguard guarantee, which sets repayments annually regardless of changes to interest rates and repayments and are only adjusted once yearly for inflation, is a worthwhile feature.
“The repayment safeguard is a good option in the current market as long as the client fully understands how it works,” said Stoodley.
HomeStart convert renters into owners
HomeStart chief executive Andrew Mills (pictured above right) said HomeStart continued to make homeownership a reality for more South Australian first home buyers.
“It’s pleasing to support homebuyers even while house prices, interest rates and living costs are increasing,” Mills said.
“It’s also not only first home buyers we’re helping, but an increasing number of South Australians re-entering the housing market.
“Our ability to convert renters into homeowners, particularly into new affordable housing, is also helping ease pressure on the rental market.”
In total, HomeStart provided 2,046 home loans in 2022-23, another decade-high figure.
More than 1,000 loans were provided to single-income households – a 44% increase on the previous year.
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