South Australian higher education grads get a leg up

The state’s Premier Peter Malinauskas called the high cost of entry onto the property market a “sticking point” that his cabinet was looking to address through alterations to government programs such as this one.

As an example, the government noted that a purchaser looking to buy a home for $850,000 under the scheme will now only need a $17,000 deposit, rather than the $25,500 they would have previously required.

Under this program, South Australian residents with a certificate III, IV, diploma, bachelor’s degree or higher qualification can apply to purchase a home with a lower deposit amount, without having to pay lenders mortgage insurance.

The graduate loan is available in all areas of the state, with the only requirement being that the home or land is intended to be the purchaser’s primary residence.

HomeStart currently has active loans with more than 2,000 borrowers through the program, 619 of which were signed in the 2021–2022 financial year.

Of these, 84 per cent were first home buyers, 63 per cent were couples, and 42 per cent were for the construction of a new home.

South Australian Treasurer Stephen Mullighan said that while the change may seem small, it would make a material difference for many trying to buy a home.

“One per cent is a significant reduction when you consider it can wipe months off people’s savings plans. This reduction provides another important avenue to getting more South Australians into their own homes,” he said.

HomeStart chief executive Andrew Mills agreed, saying he hoped the adjustment would be “life-changing” and recognising the importance of helping residents buy a home.

“Many South Australians are struggling to save enough to pay for the ever-growing deposit on a home particularly from traditional lenders, and rising house prices keep putting home ownership beyond their reach.

“The 2 per cent graduate deposit loan is another way in. HomeStart continues to adapt and innovate to address housing affordability concern and help more South Australians into their own home sooner,” Mr Mills said.