Target Market
The Starter Loan is aimed at customers who have funds for the deposit, meet all other credit criteria but do not have enough funds to cover other upfront costs such as stamp duty.
- want to buy or build a home
- need help to cover some of the upfront costs associated with buying or building a home
- have a net annual income of $75,000 or less for singles or $100,000 or less for couples
Eligibility criteria & restrictions
Customers must meet the eligibility criteria and conditions of either the HomeStart Home Loan, Graduate Loan or Low Deposit Loan.
This loan has certain eligibility criteria for you to consider:
- Can I access the Starter Loan if I take out a home loan with another bank?
No, the Starter Loan is only available if your home loan is with HomeStart. - Can the Starter Loan be put towards the deposit for my home?
No, the Starter Loan can only be used to cover the upfront costs associated with buying or building a home. - Is interest charged on the loan during the seven five years?
No, the Starter loan offers an interest and repayment free period of seven years.
Other restrictions include:
- Customers must reside in the property and not own other property
- Customers may retain up to $10,000 of personal savings
The Starter Loan is available for a maximum of 7 years.
No interest is charged and no repayments are required during this 7 year period. At the end of the 7 years, any outstanding balance is to be repaid or transferred to the home loan with HomeStart and will operate in accordance with the general terms and conditions of that loan.
Conditions
HomeStart is required to be the first mortgagee on all properties used as security for HomeStart loans.
Conditions include:
- Maximum retained savings: $10,000
- Maximum loan: $10,000
- Minimum loan: $3,000
- Combined total of all loans not to exceed $750,000
Net income limit applicable:
- Singles $75,000
- Couples $100,000
Refer to the Fact Sheet for full terms and conditions
Availability of Secondary / Deposit and Fee Assistance products:
- Advantage Loan
- Shared Equity Option
Origination channels:
- HomeStart
- Accredited Brokers
Risks
Home loans come with risks. To help you understand your risks, we recommend that you seek independent financial advice or legal advice before taking out a home loan. Some of the risks specific to the Starter Loan may include:
- Customers may not have enough funds to pay off the Starter Loan after seven years
- If that is the case, at HomeStart’s discretion, the Starter Loan may be transferred to the main home loan or the repayment time may be extended
For more information
For more information about the Starter 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 4 October 2024. R/21/1254678[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.