HomeStart lending policy combines South Australian owner-occupied lending with separate rules for the main mortgage and any additional loan. For a broker file, establish the commission treatment of each component before matching the applicant’s income, deposit and property to the proposed structure.
Broker Channel and Payment Conditions
HomeStart accepts business through accredited brokers, with lender-panel access through participating aggregators. Its broker channel page identifies the support contacts. Writing the Shared Equity Option requires the relevant accreditation.
Keep the primary mortgage, Shared Equity Option, Advantage Loan and Starter Loan as separate lines in your remuneration assessment. Apply your HomeStart and aggregator agreement to each line. A combined borrowing amount is not evidence that every component attracts the same upfront or ongoing trail.
For each component, record the commissionable balance, payment event and any exclusion. Calculate upfront only on eligible lending. Include trail in your income forecast only where the agreement provides an ongoing entitlement for that component. Retain the schedule with the settlement record so a later payment can be matched to the agreed basis.
Refinance, Clawbacks and Loan Changes
HomeStart states in its broker newsletter that there is no clawback after the first year. Retain the first-year recovery terms from your agreement alongside the settlement and discharge records. A discharge inside that period needs assessment under those terms.
An external refinance pays out the existing lender. HomeStart’s internal refinance changes the composition of an existing HomeStart loan, including adding or increasing a secondary loan. Adding a secondary loan through internal refinance cannot fund cash out. A restructure does not establish a new commission entitlement by itself.
A top-up is a separate borrowing assessment. Describe the funds’ purpose and demonstrate capacity for the additional commitment. For a fixed and variable split, HomeStart’s HomeStart product rules requires at least $50,000 in total and $20,000 in each portion. A split changes the interest-rate arrangement, while an additional loan changes the funding structure.
Applicant Eligibility and Residence
HomeStart lends for homes in South Australia that the applicant will occupy. Applicants must be at least 18 and meet the accepted citizenship or residency requirements. Australian citizens, permanent residents and eligible skilled migrants can qualify. Match the actual visa to the accepted category and retain residency evidence.
The Graduate Loan eligibility rules require qualifying education and employment, or an eligible occupation pathway. A qualification alone does not settle employment eligibility. Obtain the academic transcript or qualification evidence and the employment evidence supporting the selected pathway.
Additional loans introduce their own household tests.
| Additional Loan | Maximum Annual Household Income After Tax | Maximum Retained Savings |
|---|---|---|
| Advantage Loan | $110,000 | $20,000 |
| Shared Equity Option | $120,000 | $40,000 |
| Starter Loan | $110,000 | $10,000 |
Apply all conditions of the chosen combination. Advantage and Shared Equity cannot be combined. The Advantage rules apply the lower retained-savings limit when another additional loan is used.
Income and Deposit Evidence
HomeStart accepts several income types, including permanent employment, casual employment and eligible government benefits. Its Home Lending Policy sets evidence requirements for each source. Casual employment requires at least six months. Applicants on probation can qualify where their previous employment in the same industry exceeds two years.
Provide three months of statements supporting the deposit and the accounts showing payroll credits and living expenses. Explain transfers between accounts so the same contribution is not counted twice.
A non-repayable gift can count towards savings or the contribution, subject to HomeStart’s conditions. Gifts from interested parties such as vendors, agents or builders are excluded. Obtain the completed gift declaration and trace the funds into the applicant’s account or conveyancer’s trust account before settlement.
Separate the deposit from purchase costs and retained savings in the funding worksheet. The Starter Loan assists with upfront costs and requires the applicant to have the deposit. Allocating Starter funds to the deposit would misstate the proposed contribution.
Loan Structure and Repayment Assessment
Assess the primary mortgage and each additional loan according to its repayment obligations. HomeStart’s primary loan uses its Repayment Safeguard approach, with repayments generally reviewed annually in line with inflation. Interest-rate changes can alter the repayment period, and interest exceeding repayments can increase the balance.
The additional components have different future liabilities:
| Component | Repayment Treatment | Evidence to Explain the Structure |
|---|---|---|
| Advantage Loan | Interest accrues although monthly repayments are deferred. The balance increases over time. | Primary borrowing capacity, household eligibility and how the deferred balance will be repaid. |
| Shared Equity Option | No interest or regular repayments. HomeStart receives its contractual share when the component is paid out. | Original equity percentage and an explanation of how a sale or refinance changes the payout. |
| Starter Loan | No interest or required repayments for seven years. The remaining balance must then be repaid or rolled into the home loan at HomeStart’s discretion. | Deposit already available, eligible upfront costs and the future balance obligation. |
The Advantage Loan terms explain the deferred interest and later repayment requirement. Deferred repayments do not remove the debt from the client’s future position.
For Shared Equity, explain the appreciation liability using the HomeStart payout rules. In a hypothetical example, HomeStart contributes $150,000 towards a $600,000 property, giving it a 25% share. If the relevant value rises to $700,000, that share of the $100,000 gain is $25,000. The component’s payout is then $175,000, before any other applicable contract amounts. The primary mortgage remains a separate payout.
Property and Purchase Purpose
HomeStart requires a first mortgage over acceptable South Australian security. Match the address and purchase purpose to the selected product before treating a low deposit as sufficient for approval. Owner occupation and the restriction on owning another property affect eligibility.
The Shared Equity restrictions limit availability to metropolitan South Australia and selected regional locations. The purchase-price ceiling is $750,000. Units or apartments in buildings exceeding three levels, including the ground floor, are excluded.
Shared Equity is unavailable for land-only purchases. A construction proposal needs the relevant construction assessment, rather than the rules for an established-home purchase. Retain the contract and property details that establish which purpose and security rules apply.
Submission and Exception Enquiries
Submit a file that connects the applicant’s eligibility to the funding proposal. Include identity and residency evidence, employment or qualification documents where relevant, income evidence and the statements tracing the contribution. Add the purchase contract and property details, plus a component-by-component funding worksheet.
Show how much goes to the deposit, purchase costs and each loan component. Identify retained savings separately. For an existing loan, include repayment history and the proposed payout or restructure details.
Send an unusual scenario to HomeStart’s Scenario Helpline or your Business Development Specialist with the proposed structure and supporting facts. Name the exact policy issue and request a written assessment of that issue. Keep the response with the application. A support discussion does not replace credit approval.
The HomeStart broker enquiry and access guide explains the contact routes. Use the lender policy directory when comparing another lender’s treatment. Before lodging, reconcile the funding worksheet to the requested loan components and resolve any exception against the written response.
