South Australia has widened its low‑deposit lending suite, while a new ACT-federal deal is set to fund thousands of first home buyer dwellings.
The South Australian government has moved to expand its HomeStart low‑deposit loan products, while the Albanese and ACT governments have signed a $250 million agreement to unlock 4,900 new homes.
In South Australia, the recently re‑elected Malinauskas government has followed through on a February pledge to make it easier for first‑time buyers to access the state‑backed HomeStart Finance suite of loans.
The package centres on ultra‑low‑deposit lending and shared equity products, which enable borrowers to enter the market with deposits as small as 2 per cent while avoiding LMI.
HomeStart’s Graduate Loan, Starter Loan, and Advantage Loan sit at the heart of the changes, with the government announcing that these options were now available to a larger pool.
The Graduate Loan has been extended beyond ambulance officers and other Certificate III holders to cover firefighters, police, and technical college graduates.
Treasurer Tom Koutsantonis framed the move as a core element of the state’s affordability strategy.
“HomeStart is one of the most powerful tools the state government has to help South Australians into their own homes,” he said.
Housing and Urban Development Minister Nick Champion said the government wanted to show South Australians it was moving at pace.
“We took to last month’s election a plan to make it easier for young, hard‑working South Australians to buy their own home,” Champion said.
He went on to state that technical college graduates who would build the homes of the future should also have a realistic path to ownership.
A central feature of the package is a significant lift in income caps of the Starter and Advantage loans.
Thresholds, which previously sat at $85,000 for households accessing the Advantage Loan, $75,000 for singles or $100,000 for households using the Starter Loan, will now be a flat $110,000 for both individuals and households.
The Starter Loan remains an interest‑ and repayment‑free facility of up to $10,000, offered for seven years to help low‑income buyers cover upfront costs.
According to the government, combining the expanded eligibility with the 2 per cent deposit option could see newly eligible customers save up to $25,500 on the deposit for a home worth up to $850,000.
ACT-federal deal backs infrastructure for FHB supply
Under the agreement, the federal and ACT governments announced they would spend $250 million to support enabling works for about 4,900 homes across the ACT, with more than 1,700 dwellings to be set aside for FHBs.
The ACT is the second jurisdiction to sign onto the Commonwealth’s 2025 election commitment to deliver up to 100,000 homes for FHBs nationally.
The funding envelope includes $37.5 million to unlock 75 homes through infrastructure in the Kingston Arts Precinct and $12.5 million for works in Weston Creek to enable 150 homes.
This is alongside $100 million for estate works expected to support 537 homes across the territory by 2034.
Additional allocations will cover relocating high‑voltage powerlines in Kingston, water management infrastructure at the Deep Creek project in Molonglo Valley, and multiple stages of works at the Ginninderry Regeneration Precinct.
Federal Housing Minister Clare O’Neil used the announcement to reinforce the government’s focus on younger buyers.
She said the Commonwealth remained “determined to make it easier for young people and first home buyers to achieve the dream of owning a home.”
ACT Chief Minister Andrew Barr positioned the deal as an acceleration of the territory’s existing housing agenda.
He pointed out that the ACT government was already “increasing housing supply through land release, urban renewal, planning reform and community housing partnerships” and said the federal agreement would amplify those efforts.
Industry welcomes agreement
The building industry has broadly backed the package, saying that funding the underlying infrastructure was essential if governments were to meet their National Housing Accord targets.
Master Builders Australia CEO Denita Wawn said the announcement aligned closely with the organisation’s own advocacy, noting that it had long called for more civil infrastructure funding.
“Builders welcome this funding. As we have advocated in our pre‑budget submission, a dramatic uplift of enabling infrastructure is crucial, especially if we are to have any chance of meeting the National Housing Accord,” Wawn said.
Master Builders ACT CEO Anna Neelagama highlighted the potential wider economic effect of the infrastructure spend, as well as its impact on housing supply.
“Every dollar spent on building and construction translates to $2.50 across the economy. When this deal is executed, it will support ACT builders from home building to civil construction flowing onto non‑residential activity,” Neelagama said.
[Related: Qld expands shared equity scheme after unveiling fresh slots]
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