Reduced HomeStart deposits will mean big savings for regional home buyers
The state government’s recent lowering of minimum deposits for homes financed through HomeStart could reduce upfront costs by tens of thousands of dollars.
Eligible home buyers will be able to save tens of thousands of dollars on the up-front cost of buying a home in regional South Australia after a recent state government decision.
The government announced last month it would lower the minimum deposit required for a regional home financed through HomeStart, a state agency which already helps borrowers save money by not having to pay for mortgage insurance.
Eligible borrowers will now need only a minimum five per cent deposit for a standard HomeStart home loan, which is in line with metropolitan borrowers.
Based on a standard 20% deposit and the median house price of $340,000 in Murray Bridge, this could reduce the upfront deposit needed from $68,000 to just $17,000.
In addition, regional buyers will have greater access to a graduate loan scheme, which requires just a 2% deposit for people with Certificate III or higher.
Based on a purchase price of $340,000, the graduate loan would require a deposit of $6800 plus upfront costs, which amounts to a saving of up to $61,200.
State Treasurer Stephen Mulligan spoke about what this change could mean for regional home buyers.
“We know there are many pressure points in housing right now, and regional areas are doing it particularly tough,” he said.
“This change … will help more people get into their own homes sooner.”
More information: www.homestart.com.au.
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