Owning a home is set to become easier for young South Australians thanks to a new taxpayer-funded loan scheme.
HomeStart, starting Tuesday, will reduce its graduate loan to a minimum deposit of two percent, down from three.
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First Pierre Malinauskas hailed the state government’s housing finance scheme on Sunday as a step in the right direction to help young people enter the property market.
“We know, of course, that escalating home prices across the country have actually made the task of home ownership particularly difficult for first-time buyers,” he said.
“We have a situation in the country, including here in South Australia, where extremely hard working people are struggling to get their foot in the door to get that first time to be able to live the Aussie dream. ”
– Malinauska Prime Minister
Treasurer Stephen Mulligan said as the SA real estate market stabilizes, the new scheme will save people thousands of dollars.
“Rather than South Australians having to spend years and years trying to save 20% of their deposit to get a loan from one of the big four banks, that time is now reduced to perhaps just a few months. .
“While some of the heat is going to come out of the market, for the first time we are going to see South Australians properly armed so they can be competitive in the market,” he said.
Available to South Australians with Certificate III or higher, successful applicants won’t have to pay lender mortgage insurance, saving them thousands of dollars in upfront costs.
With more than 2,000 graduate loans already signed by HomeStart, Mr Mullighan estimates that more than 250,000 young people are eligible to apply.
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