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Why choose HomeStart?
Starting out, starting over,
start with HomeStart
1. Pay less upfront
At HomeStart, you could be able to borrow up to 97% of the property value or purchase price, whichever is less. Paying less upfront can help you get into a home of your own sooner.
You could avoid paying thousands in Lenders Mortgage Insurance (LMI). Other financial institutions may require you to purchase LMI to insure them against default or non-payment under a mortgage finance arrangement. You receive no direct benefit from the insurance, and you often have to pay the premium upfront.
HomeStart has a Loan Provision Charge (LPC), which is significantly less than LMI for most borrowers.
The following table highlights the cost of Lender's Mortgage Insurance by some financial institutions:
| Lender |
Lender's Mortgage Insurance based on Property Value of $360,000 |
| Westpac |
$5431.00 |
| Commonwealth |
$4624.00 |
| NAB |
$3746.00 |
Compared to an example of HomeStart's Loan Provision Charge:
| Lender |
Property value of $360,000 |
| HomeStart |
$885.00 |
LMI and LPC are approximate figures only, assumptions are based on property value of $360,000, loan amount of $324,000 which is 90% of the property value for a first home buyer. Different LPC apply for Construction and Seniors Equity Loans. Figures sourced online and are correct as at December 2009.
2. Manage your repayments
At HomeStart, we break the link between interest rates and repayment amount; this is called the Repayment Safeguard. We determine your initial repayments based on your income and typically adjust what you pay once a year in line with inflation.
This means in most cases, no matter what happens with interest rates, your repayment amount will only change every 12 months.
We also offer a traditional repayment option with some loans, called Interest Linked Repayments. This means your repayment amount is tied to interest rates and a set loan term, so if rates change, so do your repayments.
3. Low Deposit Loans Available
Not sure if you have enough money saved for a deposit? Home ownership could still be in your reach.
HomeStart's Low Deposit Loan can provide up to 97% of the purchase price or property value (whichever is less) for people with $1,000 in savings and a clear credit history.
If you’re a graduate, the Graduate Loan offers up to 97% of the purchase price or property value (whichever is less), so you could get into your own place with less deposit. Compare our home loans to find out more.
4. No monthly account keeping fees
HomeStart doesn’t charge monthly account keeping fees, so you can pay less in fees and more towards your loan.
5. Proudly South Australian
HomeStart is proud to be a South Australian organisation. We only operate in SA, and offer friendly, personalised service. Find out more about our organisation.
