South Australians can soon buy homes with one of the lowest deposits in the housing market

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Owning a home could soon become a reality for more South Australians with a state-government backed lender lowering their minimum deposit requirements.

The scheme is available to South Australians with a Certificate III or higher qualificationEligible graduates will be able to apply for a home loan with HomeStart Finance with as little as 2 per cent deposit.

"Rather than South Australians having to spend years and years trying to save 20 per cent deposit to get a loan with one of the big four banks, instead that time is now reduced perhaps to only months," he said. He said the government was expecting the Adelaide housing market to stabilise as interest rates rise.

 

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Typical of a lazy RBA.Laying a trap for these people when rates go up

Lower deposit bigger mortgage, bigger monthly payments, might indicate a inability to save or make sacrifices. I always was impressed by the bloke would could not save for a deposit but had a overseas trip every 2 years.

Oh dear...what could possibly go wrong.

Wow, they should be able to buy a small unit.

The scheme is only available to South Australians with a Certificate III or higher qualification? Huh.. what's that all about? A bit discriminatory wouldn't you think? So it only takes months to save $8k? Stamp duty on top of that? Mortgage insurance? Homeownership? Get real

Helping bankers bottom lines ... Yeah

The difference between the SA market for first home buyers is that there are no exemptions to not pay for stamp duty. So even if they only put down a 10,000 dollar deposit, they'd still need to front 20-25K all up.

That is Super ...

How about you report on how destructive this is.

is this responsible lending? can people show a history of reliable rent paying as proof they can afford a mortgage, yet?

If you can't afford a deposit, how are you going to afford maintenance or rates?.

With rates increasing and lowering deposits is a good recipe for disaster.

With one of the highest stamp duties

And no need to pay lender's mortgage insurance? So in a world with less job security, they don’t need a backup in case of job loss? I feel a “graduate” wasn’t responsible for thinking this through.

What a scam! Sad- how many lives will be ruined? If gov wants to help, allow interest to be tax deductible ?

That's terrible. That's not helping affordability. It's.leqding the FHB to slaughter.

What could go wrong?

STAMP DUTY IS BS AUSTRALIA WIDE !

This tends to end well...

2008 subprime mortgage crisis eat your heart out..

'for a $400,000 home, loan applicants will only need to fork out $8000 in deposit' Yeah and more than double that in stamp duty

Homestart were great with my first home.

Idiocy in the face of inflation and many many more interest rate rises to come...

Ahhhhhhhhhhhhhh

Great, then you can rent money at high interest rates

Government created sub-prime mortgages are nothing to celebrate. They aren't 'owners' but cannon fodder to prop up the property market.

Get rid of stamp duty

And they will be paying it off for next 2 life times!

What could go wrong?

Looks like the lessons from the GFC have been forgotten.

Lowest deposits and infinite payments?

Keep those money printing presses running!

Seems responsible

Freddy Mac. Did we learn nothing?

just keep kicking that can down the road, fellas.

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