HomeStart Finance Options

Advantage Loan

Advantage Loan

Key Features

» Greater flexibility of where to purchase for those on a limited income

» Can provide an additional $45,000 to your HomeStart loan

» Lower interest rate than a regular home loan

» Allows you to borrow more without increasing your monthly repayments


Eligibility

To be eligible, your household income must be less than $60,000 per year ($1,154 per week) after tax. You’ll also need to borrow the maximum HomeStart loan amount you’re eligible for


Repayments

Repayments to your Advantage Loan are voluntary.

You are not required to repay the loan until: » you pay out your HomeStart Loan, or » sell the home, or » move house (the home is no longer your main place  of residence).

You can make voluntary repayments to your Advantage Loan at any time

Low Deposit Loans

Low Deposit Loans

This loan is ideal for;

» First home buyers

» Second or subsequent home buyers

» Refinancing

» Building or purchasing an established home or land


Deposit

Deposit costs start from as little as 3% of the purchase price, or 6% to build, depending on where you want to buy.

You will also need:

  • $ 3,000 of savings held for at least three months, or twelve months of good rental history
  • clear credit history
  • funds to meet other purchase costs like fees and charges.


First Home Owner Grants

If you are an eligible first home buyer, HomeStart can help you apply for the Federal and State Government grants to put towards your deposit, fees and charges.

For further information on the First Home Owner Grants visit revenuesa.sa.gov.au


Building a home

If you build, you can choose not to make loan repayments for the first nine months or until building is complete, whichever comes first.


Interest rate options

You can choose a variable, fixed or split interest rate (part fixed, part variable) for your loan. Fixed rates are available for terms of 1-3 years.


Repayment Safeguard

HomeStart loans have a unique repayment method called the Repayment Safeguard, which helps to break the link between interest rates and repayment amounts.

Your initial repayments are based on your financial situation and typically adjusted once a year in line with inflation. This means in most cases, your repayment amount will only change once every twelve months.


Voluntary repayments

Voluntary repayments are any extra  amounts you pay over and  above your required repayment amount. You can make voluntary repayments whenever you like.

If you have a variable rate,  you can make unlimited voluntary repayments, and  if you have a fixed rate,  you can pay up to $10,000 extra per year.

If you  have a Advantage or EquityStart Loan, voluntary repayments will go to these first.


Flexible loan options

If you want to improve your home or redraw voluntary repayments, contact The Home Loan Centre so we can explore your finance options

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Seniors Equity Loan

Seniors Equity Loan

You can free up your equity to;

» purchase a new car
» go on a dream holiday
» home improvements
» supplement your regular income to help you live more comfortably.

If you’re 60 or over, a Seniors Equity Loan could help you unlock your home’s equity to start something great.

To make sure this loan is a good choice for you, we suggest that you seek independent financial and legal advice about your situation. If you receive benefits from Centrelink please contact them to discuss your options.

After years of putting money into your home, it’s only reasonable to free-up some of that equity to spend on what’s important for you today.

You can receive your funds as a lump sum or on an ad hoc basis.

No negative equity The Seniors Equity Loan is a reverse mortgage loan that doesn’t require regular loan repayments.
It includes a ‘no negative equity’ guarantee, so you’ll never owe more than the value of your home.


Repayments

Repayments to your Seniors Equity Loan are voluntary. You can choose to make repayments or defer repaying the loan until the house is sold or the last co-borrower moves out or passes away.


How much can I borrow?

Your borrowing amount depends on how old you are and the value of your property. The amount you can borrow increases each year from age 60 to 85.

Example:

Age Property Loan Amount
65 $350,000 =$52,000
70 $350,000 =$70,000
75 $350,000 =$87,500
80 $350,000 =$105,000

If there is more than one person applying for the loan, the youngest applicant must be at least 60 years of age.


Graduate Loan

Graduate Loan

Those who are eligible;

» If you hold a Diploma, degree or higher qualification

» Specific tradespeople and technicians with a Certificate III/IV

» South Australian police and nurses.


Deposit

Deposit costs start from as little as 3% of the purchase price, or 6% to build, depending on where you want to buy.

You will also need: 

  • $ 3,000 of savings held for at least three months, or twelve months of good rental history
  • clear credit history
  • funds to meet other purchase costs like fees and charges.


First Home Owner Grants

If you are an eligible first home buyer, HomeStart can help you apply for the Federal and State Government grants to put towards your deposit, fees and charges.

For further information on the First Home Owner Grants visit revenuesa.sa.gov.au


Building a home

If you build, you can choose not to make loan repayments for the first nine months or until building is complete, whichever comes first.


Interest rate options

You can choose a variable, fixed or split interest rate (part fixed, part variable) for your loan. Fixed rates are available  for terms of 1-3 years.


Repayment Safeguard

HomeStart loans have a unique repayment method called the Repayment Safeguard, which helps to break the link between interest rates and repayment amounts.

Your initial repayments are based on your financial situation and typically adjusted once a year in line with inflation. This means in most cases, your repayment amount will only change once every twelve months.


Voluntary repaymentse

Voluntary repayments are any extra amounts you pay over and above your required repayment amount.

You can make voluntary repayments whenever you like.

If you have a variable rate, you can make unlimited voluntary repayments, and if you have a fixed rate, you can pay up to $10,000 extra per year.

If you have an Advantage or EquityStart Loan, voluntary repayments will go to these first.


Flexible loan options

If you want to improve your home or redraw voluntary repayments, contact The Home Loan Centre so we can explore your finance options

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HomeStart Home Loan

HomeStart Home Loan

This loan is ideal for;

» First home buyers

» Second or subsequent home buyers

» Refinancing

» Building or purchasing an established home or land


Deposit

Deposit costs start from as little as 3% of the purchase price, or 6% to build, depending on where you want to buy.

You will also need:

  • $ 3,000 of savings held for at least three months, or twelve months of good rental history
  • clear credit history
  • funds to meet other purchase costs like fees and charges.


First Home Owner Grants

If you are an eligible first home buyer, HomeStart can help you apply for the Federal and State Government grants to put towards your deposit, fees and charges.

For further information on the First Home Owner Grants visit revenuesa.sa.gov.au


Building a home

If you build, you can choose not to make loan repayments for the first nine months or until building is complete, whichever comes first.


Interest rate options

You can choose a variable, fixed or split interest rate (part fixed, part variable) for your loan. Fixed rates are available for terms of 1-3 years.


Repayment Safeguard

HomeStart loans have a unique repayment method called the Repayment Safeguard, which helps to break the link between interest rates and repayment amounts.

Your initial repayments are based on your financial situation and typically adjusted once a year in line with inflation. This means in most cases, your repayment amount will only change once every twelve months.


Voluntary repaymentse

Voluntary repayments are any extra amounts you pay over and above your required repayment amount.

You can make voluntary repayments whenever you like.

If you have a variable rate, you can make unlimited voluntary repayments, and if you have a fixed rate, you can pay up to $10,000 extra per year.

If you have an Advantage or EquityStart Loan, voluntary repayments will go to these first.


Flexible loan options

If you want to improve your home or redraw voluntary repayments, contact The Home Loan Centre so we can explore your finance options

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Break Through Loan

Break Through Loan

Key Features

» No interest charges or repayments on the Break Through Loan

» Options to ‘buy back’ some of HomeStart’s share in the future

» On sale of your property you’ll share some of your home’s value change with HomeStart.

You can boost your borrowing power by up to 35% without increasing your monthly loan repayments,

The Home Loan Centre can assist you with getting started in a HomeStart Break Through loan.

You can also use Break Through to refinance your existing home loan so you can reduce your current repayments.


Example of a HomeStart Break Through Loan

Break Through Loan Scenario
HomeStart Loan$150,000
Break Through Loan$40,000
Total Loan facility$190,000
Property value (at start of loan)
Break Through Loan as a percentage of Property Value ($40,000 ÷ $200,000)20%
HomeStart’s share in future appreciation gains  (20% x 1.4)28%
Appreciation gains$25,000
HomeStart entitlement (28% of $25,000)$7,000
Your share of gains (72% of $25,000)$18,000
Property value loss$25,000
Your share of loss (80% of $25,000)$20,000
Break Through Loan as a percentage of Property Value ($40,000 ÷ $200,000)20%