What are the upfront fees for a HomeStart application?

Upfront costs are one of the hardest parts of buying to plan for, and they are exactly the kind of thing that can derail a buyer who has saved a tight deposit. So it is worth being clear about what HomeStart charges, the significant cost it does not charge, and the separate government and third party costs that apply to any purchase. With figures dated as at 2026, since fee schedules change.

HomeStart set up fees

Like most lenders, HomeStart has some loan set up costs that cover the administration and assessment of your loan. These can include an application or establishment fee and documentation fees. The exact amounts are set by HomeStart and are published in its rates and fees schedule, which is updated from time to time, so the current figures should always be confirmed there before you rely on them.

The big saving: no Lenders Mortgage Insurance

This is the cost that matters most, and HomeStart does not charge it. With most lenders, a deposit below 20 per cent triggers Lenders Mortgage Insurance, which protects the lender, not you, and on a low deposit loan it can run into a substantial sum. HomeStart charges no LMI on any of its loans. For a low deposit buyer, that single difference can outweigh the set up fees several times over, which is one of the strongest reasons HomeStart appeals to buyers entering with a small deposit.

Construction loan fees

If you are building, there is an extra fee to be aware of. A construction loan releases money to your builder in stages, and HomeStart charges a progressive drawdown fee for processing each of those staged payments. As at 2026 this is 100 dollars per progress payment. Because a HomeStart house and land package through a partner builder often uses only about three drawdowns instead of the usual six, fewer payments also mean fewer of these fees, so the building route you choose affects the total.

Other HomeStart fees that can apply later

Some HomeStart fees are not upfront at all but can apply later in the life of the loan. For example, a mortgage discharge fee, around 450 dollars as at 2026, applies when you ask for your mortgage to be discharged, such as when you sell or refinance away. These are not part of getting started, but it is worth knowing they exist so nothing surprises you down the track. Again, confirm the current amounts with HomeStart.

Costs that are not HomeStart fees

A lot of the upfront cost of buying is not a lender fee at all, but government and third party costs that apply no matter who you borrow from.

• Stamp duty, a state tax, though South Australia has first home buyer concessions on eligible new homes.
• Mortgage and property registration fees charged by the state.
• Building and pest inspections, paid to the inspectors.
• Conveyancing or legal fees, paid to your conveyancer.

None of these are HomeStart charges, but they are real cash you need at the time of buying, so include them when you plan your budget.

How booster loans can help with upfront costs

HomeStart also has products aimed squarely at the upfront cost hurdle. The Starter Loan, for example, is designed to help eligible buyers with upfront costs, which can ease the very pinch this question is about. If the gap between you and a purchase is the upfront cash rather than the deposit itself, it is worth asking HomeStart or a broker whether a booster loan fits.

Where to get the exact current figures

Because fee schedules are reviewed and updated, the reliable source for the precise current amounts is HomeStart own rates and fees information. Use the figures here to understand the shape of the costs, the set up fees, the absence of LMI, the construction drawdown fee, then confirm the exact current numbers with HomeStart before you commit.

Can the fees be added to the loan?

A common question is whether you have to pay the set up fees in cash upfront or whether they can be included in the loan. The answer depends on the lender, the product and your situation, and HomeStart can tell you how its fees are handled in your case. Including fees in the loan spreads the cost but means you pay interest on them over time, while paying upfront keeps your loan smaller. It is worth asking how this works so you can plan your cash for settlement accurately.

Why the no LMI saving is the headline

If you take one thing from this, let it be the absence of Lenders Mortgage Insurance. On a low deposit loan with a mainstream lender, LMI is frequently the single largest upfront cost, and it buys you nothing, it protects the lender. Because HomeStart charges none, a buyer entering with a small deposit often comes out ahead overall, even after the set up fees, compared with a mainstream low deposit loan. When you weigh up the costs, judge the whole picture, not just the line items HomeStart does charge.