Borrowing Tips
Budgeting
Buying Tips
First Home Buyer
Home Loans
Owning a Home
Saving Tips
Starting Over
Find out how HomeStart is helping with upfront costs
Thursday, 12 January 2023
Have you heard of HomeStart’s Wyatt Loan? What about the Starter Loan? HomeStart offers two secondary loans that could assist you with the upfront costs associated with buying a home. We outline what these upfront costs are and how our unique product options could help you achieve your home ownership dreams sooner.
To help more South Australians buy their own home, HomeStart has loan options that can assist buyers with the deposit and upfront costs required. But what upfront costs could I be facing, you might ask?
When purchasing a home, the first major cost you’ll need to save for, and the most spoken about, is the deposit. Generally, most financial institutions require a 20% deposit, and for anything less they charge Lenders Mortgage Insurance (LMI), which protects them if a borrower defaults on their loan. The lower the deposit you’ve saved, the higher the LMI charge. At HomeStart, we don’t believe in charging LMI. Even if a potential home buyer has only been able to save a 2% deposit* , we offer South Australians hope that home ownership is closer than they think.
The second, and much less discussed, part of the contribution is the upfront cost involved with servicing a home loan as well as the required Government charges, such as stamp duty. While these fees and charges may differentiate depending on the lender, there will be a range of costs you need to be aware of, including the loan establishment fee, valuation fee, conveyancer costs, and potential building inspection costs. You can view HomeStart’s fees and charges here.
Unfortunately, these additional upfront costs can add up. To help, HomeStart offers two secondary loans that can assist potential home buyers step up and onto the property ladder, sooner.
The Wyatt Loan
How does $12,000 towards your deposit and upfront costs sound? HomeStart’s Wyatt Loan is a secondary loan that offers home buyers up to $12,000 towards their deposit and upfront costs, with an interest and repayment- free period of up to five years. After this period, the Wyatt Loan will either then be repaid, or in appropriate circumstances, will be combined with the primary HomeStart Loan. Find out more about the Wyatt Loan and the eligibility criteria here.
The Starter Loan
Used to assist buyers with the upfront costs involved in buying a home, the Starter Loan could provide up to $10,000 to help you get into your own home sooner. With a five-year loan term, and with no interest or repayments required during this time, the Starter Loan can be used towards costs such as Stamp Duty. An initiative of the 2019 South Australian State Budget and supported by the Affordable Housing Fund, you may be eligible for the Starter Loan if you qualify for a primary HomeStart loan and meet the income criteria.
If you think you are ready to begin the home buying journey or to make a fresh start, apply now with HomeStart and a team member will be in touch. If you would like to learn more about our low deposit loans, Shared Equity Option or unique range of product features, contact HomeStart today. Home ownership could be closer than you think.
To help more South Australians buy their own home, HomeStart has loan options that can assist buyers with the deposit and upfront costs required. But what upfront costs could I be facing, you might ask?
When purchasing a home, the first major cost you’ll need to save for, and the most spoken about, is the deposit. Generally, most financial institutions require a 20% deposit, and for anything less they charge Lenders Mortgage Insurance (LMI), which protects them if a borrower defaults on their loan. The lower the deposit you’ve saved, the higher the LMI charge. At HomeStart, we don’t believe in charging LMI. Even if a potential home buyer has only been able to save a 2% deposit* , we offer South Australians hope that home ownership is closer than they think.
The second, and much less discussed, part of the contribution is the upfront cost involved with servicing a home loan as well as the required Government charges, such as stamp duty. While these fees and charges may differentiate depending on the lender, there will be a range of costs you need to be aware of, including the loan establishment fee, valuation fee, conveyancer costs, and potential building inspection costs. You can view HomeStart’s fees and charges here.
Unfortunately, these additional upfront costs can add up. To help, HomeStart offers two secondary loans that can assist potential home buyers step up and onto the property ladder, sooner.
The Wyatt Loan
How does $12,000 towards your deposit and upfront costs sound? HomeStart’s Wyatt Loan is a secondary loan that offers home buyers up to $12,000 towards their deposit and upfront costs, with an interest and repayment- free period of up to five years. After this period, the Wyatt Loan will either then be repaid, or in appropriate circumstances, will be combined with the primary HomeStart Loan. Find out more about the Wyatt Loan and the eligibility criteria here.
The Starter Loan
Used to assist buyers with the upfront costs involved in buying a home, the Starter Loan could provide up to $10,000 to help you get into your own home sooner. With a five-year loan term, and with no interest or repayments required during this time, the Starter Loan can be used towards costs such as Stamp Duty. An initiative of the 2019 South Australian State Budget and supported by the Affordable Housing Fund, you may be eligible for the Starter Loan if you qualify for a primary HomeStart loan and meet the income criteria.
If you think you are ready to begin the home buying journey or to make a fresh start, apply now with HomeStart and a team member will be in touch. If you would like to learn more about our low deposit loans, Shared Equity Option or unique range of product features, contact HomeStart today. Home ownership could be closer than you think.
