HomeStart has reached a milestone, with lending to first homebuyers soaring to a record $932 million over the past year. The surge reflects growing interest in HomeStart’s low deposit loans, offering a vital alternative for those struggling to secure traditional financing. The past year saw a seven per cent increase in loans settled compared to the previous year, totalling 1768, while construction loans also reached unprecedented levels, with 1255 settlements—more than 40 per cent higher than in 2023.
The shift aligns with government initiatives aimed at boosting housing supply. By waiving stamp duty for first homebuyers constructing or purchasing new homes and expanding grants, the state has provided stronger incentives for South Australians to step onto the property ladder. The Australian Bureau of Statistics reported a 17 per cent increase in new dwelling approvals in South Australia during the first quarter of 2025, reinforcing the momentum.
HomeStart’s overall lending hit a twenty-year peak in 2024, settling 2811 loans and surpassing $1.25 billion. Unlike major banks, HomeStart eliminates Lenders Mortgage Insurance, removing a significant financial barrier and making home ownership more attainable for many South Australians.
Treasurer Stephen Mullighan highlighted the significance of these record results, attributing them to HomeStart’s role in supporting aspiring homeowners. Thousands of people who would otherwise be unable to secure finance from traditional banks are now achieving their goal of home ownership. The combination of stamp duty relief, expanded grants, and HomeStart’s accessible loans is making a tangible difference in easing entry into the market.
HomeStart CEO Andrew Mills echoed this sentiment, pointing out that cost-of-living pressures continue to be a challenge for many. By providing a crucial alternative to conventional lending, HomeStart is giving more people the opportunity to buy their first home. The increase in construction-related lending is also contributing to addressing the housing supply issue, a critical step in tackling the broader housing crisis.
For many South Australians, the road to home ownership is often blocked by financial hurdles that traditional lenders are unwilling to accommodate. HomeStart’s approach is proving instrumental in breaking down those barriers. The rise in construction lending not only assists individual buyers but also contributes to the state’s broader housing objectives, ensuring more homes are built to meet growing demand.
The numbers speak for themselves—thousands of new homeowners, a substantial increase in housing supply, and a lending model that prioritises accessibility over rigid financial constraints. The momentum gained over the past year demonstrates the impact of strategic housing policies and the role of financial institutions willing to think beyond traditional lending structures. HomeStart is not just helping South Australians secure homes; it’s reshaping how first-time buyers approach property ownership in a challenging economic climate.
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