A further $10 million has been allocated to the Starter Loan in the 2021-22 Mid-Year Budget Review, which could see more people access the scheme.

Borrowers must also qualify for the primary 'HomeStart Loan' scheme, which provides finance to borrowers with as little as 5% deposit, or 8% deposit for builds.

The Starter Loan is also 'repayment free', meaning there are no repayments required for the first five years.

After that time if the loan is not paid in full, it could be reviewed and may be transferred to the primary HomeStart Loan balance.

Recipients can repay their interest-free loan over five years if they meet eligibility requirements, such as having a net household income of less than $65,000 or $90,000 for couples.

Since the scheme's launch in late 2019, 705 Starter Loans have been approved:

  • 2021-22 financial year: 217 (this year to date)
  • 2020-21 financial year: 378
  • 2019-20 financial year: 110

The total value of Starter Loans has reached $6.4 million since launch, and the value of homes built or purchased under the scheme is $201 million.

Of those who were approved for a loan, 70% were living in private rentals and a small number were Housing SA tenants.

Minister for Human Services Michelle Lensink urged eligible South Australians that are looking to purchase their own home to consider a Starter Loan.

"During the COVID-19 pandemic, the statistics clearly show take up of the Starter Loan has surged, which could be in part because we broadened the eligibility criteria to include moderate-income earners," Ms Lensink said.

She said that in addition to the Starter Loan initiative, the state government is delivering 1,000 new affordable homes across the state, being sold at price points no more than $422,050.

This is 'well below' Adelaide's median house price of over $731,000 according to Domain's latest report.

"Many of these homes are available through shared equity and I urge South Australians looking for housing to jump on our new HomeSeeker SA website for more information about how to save and budget for a home and for exclusive affordable home sales," Ms Lensink said.

This is in addition to the state's $15,000 First Home-Owner Grant accessed when borrowers build a new home.

Both of these schemes mean that South Australian home owners could access up to $25,000 to build a brand new home.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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