Target Market Determination - Starter Loan

Target Market Determination - Starter Loan

Target Market The Starter Loan is aimed at customers who have funds for the deposit, meets all other credit criteria but not enough funds to cover other upfront costs such as stamp duty. The Starter Loan is perfect for borrowers who want to:
  • buy an established home;
  • buy a newly completed home; or
  • construct a home
Conditions Customers must meet the conditions of either the HomeStart Home Loan, Graduate Loan or Low Deposit Loan.
  • The property must be owner occupied by the customers
  • Customers may not own other property
  • Customers may retain up to $10,000 of personal savings
  • No monthly repayment required (no interest is charged)
The Starter Loan is available for a maximum of seven years. At the end of the seven years, the loan is reviewed to determine if the outstanding balance on the Starter Loan is transferred to the HomeStart Home Loan, Graduate Loan or Low Deposit Loan balance (if not voluntarily repaid within seven years) and will operate in accordance with the general terms and conditions of the HomeStart Home Loan, Graduate Loan or Low Deposit Loan.
Restrictions HomeStart is required to be the first
mortgagee on all properties used as security for HomeStart loans.
  • Maximum LVR: combined Starter Loan and HomeStart Home Loan, Graduate Loan or Low Deposit Loan must not exceed $850,000
  • Maximum retained savings: $10,000
  • Maximum loan: $10,000
  • Minimum loan: $3,000
Availability of Primary products:
  • HomeStart Home Loan
  • Graduate Loan
  • Low Deposit Loan
Availability of Secondary / Deposit and Fee Assistance products:
  • Advantage Loan
  • Shared Equity Option
Net income limit applicable:
  • Singles $75,000
  • Couples $100,000
Origination channels:
  • HomeStart Finance
  • Accredited Brokers
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
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 1 July 2023. R/21/1254678

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

Download PDF version