With house prices on the incline and the market flooded with hopeful buyers, it can make the home buying process a frustrating and lengthy one. Searching for a property that suits your lifestyle and sits within your price bracket can sometimes seem impossible! However, there are a number of opportunities available for South Australians who are looking to buy a home. Lenders such as HomeStart are unique and are focused on developing innovative product solutions to assist more people access finance when they otherwise would not have been able to. Likewise, there are options like the State Government initiative, HomeSeeker SA, who develop and sell affordable homes, further assisting South Australians with their ownership dreams.
 
With the median house price reaching up to $560,000 in metro South Australia, up from $540,000 at the end of June 2021, this rapid growth in house prices has made it difficult for many buyers to enter the market. Considering that the average loan size to first home buyers is $361,680 and that the deposit must then cover additional upfront costs (think LMI, stamp duty, conveyancer costs, etc…) this doesn’t leave much wiggle room for those trying to get themselves onto the property ladder. 
 
As an organisation that exists to help more South Australians buy their own homes, HomeStart feels the frustration along with home buyers. To help more people, HomeStart do not charge LMI and have product such as the Starter Loan (that can help reduce the upfront costs) and the Shared Equity Option (SEO).
 

How can Shared Equity help me?

Essentially, our Shared Equity Option allows people to borrow between 5% and 25% of the purchase price or property valuation (whichever is lower) as an interest-free and repayment-free loan up to the value of $200,000. The SEO boosts borrowing power so that you can buy the home you want without increasing your monthly repayments and therefore a greater choice in homes in a wider range of suburbs. As there is NO interest payable on the Shared Equity option, HomeStart will instead share in the gain or loss in property value when you sell your home. 

The scenario below demonstrates how a 25% SEO increased the purchase power from $300,000 to 400,000*, without increasing the monthly repayments. 



*Based on 97% LVR. Maximum HomeStart Home Loan may vary as it is based on individual circumstances. Shared Equity Option is available in metro Adelaide and some regional centres. Shared Equity Option must not exceed 25% of the lessor of the purchase price or property valuation. 
 

Eligibility:

To be eligible for a Shared Equity Option for either an established property or a house and land package, you will need to meet the requirements of a HomeStart primary loan. The Shared Equity Option is not available for land only purchases.

How do I apply?

We know that it is tough for home buyers searching the market for their own home. If you think that you are ready to begin the home buying journey or 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 Shared equity Option, or how you can access our unique range of loans, contact HomeStart today. Home ownership could be closer than you think.
 
For those who already have a pre-approval with HomeStart but are struggling to find a property within your price range, the Shared Equity Option may help boost your borrowing power. Contact HomeStart on 8203 4081 or email myloan@homestart.com.au