In a significant move to make homeownership more accessible, South Australia has seen a huge growth in loans to first-home buyers through HomeStart, with record lending totalling $932 million over the past year. This initiative has been made to help those entering the housing market, providing low deposit loans which have contributed to a 7 per cent increase in lending from the previous year.
The data revealed by the SA Government shows that in 2024, a total of 1768 loans were settled for first-home buyers. A considerable rise was seen in construction loans, with 1255 being settled. This marked an increase of over 40 per cent compared to the figures from 2023.
This increase in lending activity is due to several proactive government measures aimed at facilitating first-time homebuyers. These include waiving stamp duty for those purchasing or building new homes, which has significantly reduced upfront costs. This policy has succeeded in its aim, as shown by the latest figures from the Australian Bureau of Statistics, which showed a 17 per cent increase in newly approved dwellings in South Australia for the January 2025 quarter.
The total number of loans settled by HomeStart also reached a 20-year high in 2024, with 2811 loans amounting to more than $1.25 billion in lending. This is different from traditional bank offerings, as HomeStart does not require Lenders Mortgage Insurance.
Treasurer Stephen Mullighan MP shared, “These record lending results for first homebuyers show just how important HomeStart is in providing a pathway for South Australians to get into home ownership.
“HomeStart is making it possible for thousands of people unable to get finance from the traditional banks, to achieve their dream of home ownership.
“By abolishing stamp duty for first homebuyers who buy or build a new home, expanding the First Home Owner Grant and offering HomeStart low deposit loans, we’re making it easier for South Australians to purchase their first home.”
HomeStart CEO Andrew Mills said, “With cost-of-living pressures impacting many South Australians, HomeStart is proud to be making a difference to those struggling to buy a home.
“Our record construction-related lending is also playing an important role in increasing the supply of new houses – an important step in addressing the housing crisis.
“For most of our customers, securing a loan through traditional lenders isn’t an option.
“That’s why HomeStart’s innovative loans are opening doors to home ownership for more people.”
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