The Malinauskas Labor Government is helping more first home buyers build their home through record levels of construction lending through HomeStart.
During the 2023/24 financial year, HomeStart achieved an all-time record for construction related lending, with 1,081 loans, 25 per cent higher than the last record achieved in 2021 during the HomeBuilder grant period.
In the five years prior, construction related lending averaged 625 loans per year.
During 2023/24, a record 701 loans were secured for first home buyers building or buying a newly built home. This is almost three times the annual average over the past 20 years at just 248 loans.
The total number of first home buyer loans, either building a new home or buying an established one, was 1905 loans, the highest since 2001 when the First Home Owners Grant was introduced.
Around two thirds of all new customers with HomeStart were first home buyers.
HomeStart Finance was established by the SA Government in 1989 with the purpose of operating a home ownership assistance program.
The average purchase price for a HomeStart customer was $515,000 over the year, while the average house and land package for HomeStart customers was around $580,000.
Approximately 30 per cent of new customers utilised HomeStart's Shared Equity Option product, and around 18 per cent used the Starter Loan which is facilitated through a State Government budget initiative.
This year HomeStart made its 2 per cent deposit loan available to first home buyers building a home, delivering on a Malinauskas Government election commitment.
To make it easier for South Australians to enter the housing market, the State Government also made some important changes through the State Budget:
- Abolished stamp duty for all first homebuyers who buy or build a new home
- Expanded the First Home Owner Grant for eligible first home buyers, making it easier for buyers to purchase a newly built affordable home.
This means eligible buyers who purchase a new house for $580,000 would be more than $40,000 better off, thanks to a $15,000 First Home Owner Grant and $25,730 in stamp duty relief.
As put by Nick Champion
This record lending illustrates the Government is helping more young South Australians secure homeownership.
We are seeing record numbers of young people access loans with HomeStart so they can build or buy their first home.
More than a third of loans for construction related purposes were to borrowers aged under 30.
Together with our Budget initiatives, this Government is taking meaningful action to help younger South Australians get their start in the property market.
As put by Andrew Mills, HomeStart Chief Executive Officer
HomeStart is proud to be helping first home buyers achieve their dream of home ownership. Not everybody is fortunate to have access to the 'bank of mum-and-dad' but all South Australians do have access to HomeStart.
By helping first home buyers who want to build a home, HomeStart is also providing a long-term boost to the building industry and supporting ongoing employment in the construction sector.
The majority of our customers are unable to access finance elsewhere and we are delivering on our purpose of making home ownership a reality for more people in more ways.
