HomeStart Finance Home Loans
How the South Australian government low deposit lender works, explained simply by an Adelaide mortgage broker. Deposits, income limits, fees, building and grants.
HomeStart Finance is the South Australian government low deposit home lender. It lets eligible South Australians buy or build with a small deposit and no Lenders Mortgage Insurance, with booster loans that can lift your budget. It lends for owner occupied South Australian homes only.
HomeStart Finance is the South Australian government low deposit home lender, designed to help more South Australians buy or build sooner. These guides explain how much you can borrow, the minimum deposit, the income limits on its booster loans, building, fees, and how the First Home Owner Grant fits in, with figures current as at 2026.
What HomeStart Finance is
HomeStart Finance is the South Australian government low deposit home lender. It was set up to help more South Australians into home ownership, and it lends only for owner occupied homes within South Australia, not for investment properties or interstate purchases. Its whole design is around getting people in with a smaller deposit than mainstream lenders usually require.
The low deposit advantage, and no LMI
HomeStart lets eligible buyers start with as little as a 5 per cent deposit to buy an established home or about 8 per cent to build, and eligible graduates can start with as little as 2 per cent. Crucially, it charges no Lenders Mortgage Insurance on any loan, a cost that mainstream lenders apply to low deposit loans, which can be a significant saving.
Booster loans that can lift your budget
On top of a standard home loan, HomeStart offers additional loans such as the Advantage and Starter loans, which can boost an eligible buyer budget by up to around 25 per cent. The Advantage Loan is structured so it does not add to your monthly repayments, because it is repaid only once your main home loan is paid off.
Who it suits, and the income limits
HomeStart is aimed at lower to moderate income South Australians. The booster loans carry household income caps, which as at 2026 sit at around 110,000 dollars net for the Advantage and Starter loans. These figures are reviewed and change over time, so the current limits should always be confirmed with HomeStart.
Building and grants
You can build a new home with HomeStart, and eligible first home buyers can put the South Australian First Home Owner Grant toward their deposit and costs. Building is financed as a construction loan with staged progress payments, and for a build the grant is generally paid at a construction milestone, so timing matters in your planning.
The trade offs to weigh up
HomeStart can open a door that mainstream lenders keep shut, but its products have features and repayment structures that are worth understanding fully before you commit. It is well worth getting advice on whether HomeStart, a mainstream lender, or a federal scheme is the best fit for your situation, since the right answer is different for different buyers.
- HomeStart is the South Australian government low deposit lender, for owner occupied SA homes only.
- You can start with as little as a 5 per cent deposit to buy or 8 per cent to build, or 2 per cent for eligible graduates.
- HomeStart charges no Lenders Mortgage Insurance on any loan.
- Booster loans can lift an eligible budget by up to around 25 per cent without raising monthly repayments.
- Income limits and loan caps change over time, so always confirm the current figures with HomeStart.
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HomeStart Finance Loans: common questions
How much can I borrow with HomeStart?
How much you can borrow with HomeStart depends on your income, expenses, debts and deposit, assessed much like any lender. What is different is that HomeStart charges no LMI and offers booster loans, the Advantage and Starter loans, that can lift an eligible buyer budget by up to around 25 per cent without raising monthly repayments. It lends for owner occupied South Australian homes only.
What is the minimum deposit required for a HomeStart loan?
With a standard HomeStart loan you can buy an established home with as little as a 5 per cent deposit, or build with about an 8 per cent deposit. Eligible graduates can start with a 2 per cent deposit to buy or 5 per cent to build. HomeStart charges no Lenders Mortgage Insurance on any loan, which is a major saving. Figures current as at 2026.
What are the new income limits for the HomeStart Advantage and Starter loans?
As at 2026, HomeStart increased the maximum net, after tax, household income for both the Advantage and Starter loans to around 110,000 dollars per year. These are HomeStart booster loans that sit on top of a HomeStart home loan to lift your budget or help with upfront costs. The limits are reviewed and change over time, so always confirm the current figure with HomeStart.
Can you build a house with a HomeStart loan?
Yes. You can build a new home with HomeStart through its standard HomeStart Loan or the Graduate Loan, for owner occupied homes in South Australia. You can choose a house and land package with a partner builder or buy your own block and use a licensed builder. Building generally needs about an 8 per cent deposit, or 5 per cent for eligible graduates, with no LMI.
How do progress payments work on a HomeStart construction loan?
A HomeStart construction loan releases money to your builder in stages, called progress payments or drawdowns, as each stage of the build is finished. You pay interest only on what has been drawn so far. Standard builds use about six drawdowns, but HomeStart house and land packages through partner builders often use only three, which can save on interest. A drawdown fee applies per payment.
How long does a HomeStart loan approval take?
It varies. A HomeStart application can be started online in around 20 to 30 minutes, and a conditional approval can often follow reasonably quickly once your documents are in. Full, unconditional approval comes later, after you have a property and it has been assessed. The biggest factor within your control is having your documents ready, which can take days off the process.
What documents do I need for a HomeStart KYC/identity check?
For a HomeStart application you need to prove your identity to a points based standard, usually with a combination such as a passport or driver licence plus a Medicare card or birth certificate. Alongside identity you provide income evidence, bank statements, details of your debts, and proof of your deposit. Having these ready makes the process much faster.
What are the upfront fees for a HomeStart application?
HomeStart charges some set up fees, which can include an application or establishment fee and documentation fees, but crucially it charges no Lenders Mortgage Insurance on any loan, a major saving on low deposit loans. Construction loans add a progressive drawdown fee, 100 dollars per progress payment as at 2026. Confirm the current fee schedule with HomeStart.
Can I use the First Home Owner Grant (FHOG) as my deposit with HomeStart?
Yes. HomeStart allows eligible first home buyers to put the South Australian First Home Owner Grant toward their deposit and upfront costs. The grant applies to new homes, and for a build it is generally paid at a construction milestone, so timing matters. The grant amount and rules are set by the state, so confirm the current position with RevenueSA.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.