Target Market
The Low Deposit Loan is aimed at customers who have a smaller deposit who want to buy an established home.
This loan is aimed at customers who want to choose from a:
- Standard Variable Rate
- Fixed Interest Rate (1, 2 or 3 years) (1% interest rate loading applies in the first 12 months of the loan)
- Split Interest Rate (total minimum loan is $50,000 and each portion of the split facility must have a minimum of $20,000)
Eligibility criteria & restrictions
This loan has certain eligibility criteria for you to consider:
- Can I use the Low Deposit Loan towards the purchase of a rental property?
No, HomeStart does not lend for investment property purchases. You must occupy the home as your principal place of residence and not own any other property. - Is there a limit to the maximum I can borrow from HomeStart?
Yes, the combined total of a home loan and additional loan must not exceed $750,000. - Given how much I can borrow, will I be charged Lenders Mortgage Insurance (LMI)?
No, HomeStart does not charge LMI to customers. In fact, HomeStart does not require LMI.
Other restrictions include:
- Customers must be 18 years of age or over
- Customers must be an Australian citizen, have permanent residency status or have any acceptable class of visa
- Customers must reside in the property and not own other property
- Security for the loan must be located in South Australia
- Customers must have regular income (this can include Centrelink benefits)
- Customers must have a clear credit history - no current or outstanding defaults should be listed on the customer’s current credit report
- Not be an undischarged bankrupt
Conditions
- Maximum loan: $750,000
- Minimum loan: $10,000
- Maximum LVR: 97%
- Advantage Loan
- Shared Equity Option
- Starter Loan
- HomeStart
- Accredited Brokers
Risks
Home loans come with risks. To help you understand your risks, it is recommended that you seek independent financial advice or legal advice before taking out a home loan. Some of the risks specific to the Graduate Loan may include:
- Due to how we structure your repayments, paying off your home loan may take longer than with a conventional lender
- At times, the repayments required may be less than the interest charged onto your loan, resulting in your loan balance increasing
For more information
For more information about the Low Deposit Loan, call us on 1300 636 878 and one of our dedicated Home Loan Specialists can help answer your questions. Alternatively, visit our website to find more information about this specific home loan product.
Circumstances when TMD no longer appropriate
- Product has been removed from distribution
- Review trigger event occurs
- HomeStart has been notified of a significant dealing event
Review period
- Initial review – 3 months from date of first issue
- Periodic review - biennial from initial review (or earlier if product altered)
Complaint notification
www.homestart.com.au/Feedback-and-complaints
DDO reporting
Distributors will report if they become aware of a significant dealing event in relation to this TMD, within 10 business days.
Identification information
Effective date 29 November 2024. R/21/1254673[v9]
Important Information about TMD’s
A TMD is not intended to provide you with financial advice.
The information in a TMD does not take into account your individual objectives, financial situation or needs and before making any decision you should refer the relevant Terms & Conditions and Fees & Charges information and other supplementary documents, such as the Key Fact Sheet to consider whether the product is appropriate for you.
If you are looking to report information to HomeStart in relation to our product Target Market Determinations, you can email us at DDOreporting@homestart.com.au.