Low and moderate-income earners in South Australia have received a boost in their efforts to own their own home, after the expansion of a $10,000 interest-free loan was announced.
As part of a state government scheme, the ‘Starter Loan’ will now be available for more South Australians looking to build or buy a new home, by covering costs such as stamp duty, fees and charges.
South Australia’s Treasurer, Rob Lucas, said: “This is a significant initiative that will help ensure the great Australian dream of home ownership is a reality for many more South Australians.”
The eligibility thresholds for the five-year interest-free loan have been increased meaning more can now apply.
Originally, singles who had an annual net income of less than $52,000 could apply – now $65,000 and for couples, the minimum income has been increased from $60,000 to $90,000 combined.
“The scheme is already proving successful, with 144 Starter Loans settled since its launch in September last year, and we would expect to see increased demand as a result of the expansion of the eligibility criteria to include moderate-income earners,” said Mr Lucas.
The starter loan is in addition to the $15,000 First Home Owner Grant and the $25,000 HomeBuilder Grant, meaning savings are there to be made by South Australian’s in these troubling economic times.
We know how hard it can be for many people to save for a deposit and other upfront costs associated with a home loan, let alone in the current COVID-19 climate, and we are pleased to be able to help.South Australia Treasurer Rob Lucas
The extra $3 million pledged to the starter loan program takes the total spending up to $10 million over seven years, with as many as 1,000 loans expected to be handed out to South Australian’s by 2026.
“This will also have positive flow-on benefits for the local housing industry more broadly as more South Australians enter the property market, either through existing homes or new home builds,” Mr Lucas said.