State Government-owned home lender HomeStart has supported nearly 1,400 first home buyers into home ownership in the most recent financial year, its latest annual report shows.
In 2022-23, HomeStart provided 1,394 new loans to first home buyers, the highest number for a decade, despite rising interest rates and house prices.
The number of loans to first home buyers is a 38 per cent increase on the previous year.
The figures come as the Malinauskas Government’s recent state budget abolished stamp duty for first home buyers buying a building a new home in South Australia, up to a value of $650,000.
HomeStart reports that enquiries for new loans in the weeks following the stamp duty announcement increased by more than 50%.
HomeStart provides home loans to lower-income South Australians many who don’t qualify for home loans from traditional lenders, providing low-deposit loans without charging expensive lenders’ mortgage insurance.
In total, HomeStart provided 2,046 home loans in 2022-23, another decade-high figure. More than 1,000 loans were to single income households – a 44 per cent increase on the previous year.
Three-quarters of HomeStart’s loans went to households on income levels that would make them eligible for affordable housing.
Since 1989, HomeStart has now helped more than 83,000 people into their own home, with this year more than half aged under 40, and a median customer income of $68,000.
The Malinauskas Government is focused on boosting housing supply and affordability.
The June State Budget included a comprehensive $474.7 million housing package which supports the delivery of 3,600 new homes over five years and reduces the cost of housing for around a further 14,000 new homes, including abolishing stamp duty for first home buyers on new homes valued up to $650,000.
As put by Stephen Mullighan
Everyone deserves secure and affordable housing, and the Malinauskas Government is doing everything it can to keep the dream alive.
Low deposit loans through HomeStart are making a real difference, helping lower-income South Australians achieve the home ownership dream, even while interest rates are increasing.
We know for many young South Australians home ownership has never felt further from reach; HomeStart is helping to get it back within their grasp.
As put by HomeStart Chief Executive Andrew Mills
I’m delighted that HomeStart continued to make home ownership a reality for more South Australian first homebuyers.
It’s pleasing to support homebuyers even while house prices, interest rates and living costs are increasing.
It’s also not only first homebuyers 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.
