South Australian first home buyers building a home will save thousands with a new 2 per cent deposit home loan available through HomeStart.

A Labor election commitment, it’s the latest in a suite of measures to help more South Australians enter the property market.

Purchase price

20% deposit

2% deposit














Excluding fees and charges
#median purchase price for a metro property purchased through HomeStart in 2022-23
*median house price in metropolitan Adelaide, Dec 2023
^median price of building a house in metro Adelaide through HomeStart in 2022-23

Eligible buyers will also benefit from the $15,000 first home owners grant and the Malinauskas Government’s abolition of stamp duty for first home buyers on new homes valued up to $650,000 - or vacant land up to $400,000 to build a new home. Combined, these provide up to $44,580 in relief.

Unlike many commercial lenders, HomeStart does not require Lenders Mortgage Insurance if buyers don’t have a 20% deposit which can cost in excess of $10,000.

The new 2 per cent deposit loan is available in metropolitan and selected regional areas. Homebuyers must purchase a house and land package with one of HomeStart’s selected builder partners and the property must be their primary residence. 

Because the new loan is for new builds, it will also boost supply.

Last year’s State Budget featured a $474.7 million housing package to support the delivery of 3,600 new homes over five years and reduce the cost of housing for around another 14,000 new homes.

For more information on the 2 per cent deposit loan including a list of eligible builders, visit

Treasurer, Stephen Mullighan said “We are doing everything possible to help South Australians achieve the dream of home ownership.

Saving a deposit can take years, and make it seem impossible to get a foot in the door.

This new 2 per cent minimum deposit home loan through HomeStart is another way we are helping first home buyers, saving them thousands in upfront costs while also increasing much needed supply.”

HomeStart CEO, Andrew Mills said “The 2 per cent deposit loan will unlock homeownership for more South Australian first home buyers aiming to build their own home.

Reducing the deposit requirement will open the market to many first homebuyers who previously felt home ownership wasn’t possible for them.

It will also provide a boost to the building industry and support ongoing employment in the sector.”

Hickinbotham Group Managing Director, Michael Hickinbotham said “Home ownership is transformative, providing safety and security for families while contributing to the social and economic success of our state. 

It is pleasing to see meaningful action by the State Government to make home ownership more accessible.

This increased support will help more South Australians into home ownership, sooner.”