SA Government lender HomeStart Finance helped one in six South Australian homebuyers to buy a property in the 2016/2017 financial year (FY17).
HomeStart’s annual report was tabled in State Parliament last week and it was revealed that the lender approved a total of 1,674 home loans worth $432 million in FY17.
The lender also achieved a record profit of $20.3 million in FY17. The average loan size was $257,321.
The number of loans increased 5% and average loan size increased 3.4% on the 2015-16 financial year (FY16). In FY16 the lender approved 1,599 loans worth $393 million.
Real Estate Institute of South Australia (REISA) chief executive officer Greg Troughton, said it was good news but still says more needs to be done to ensure first homeownership continues to be affordable.
“Ultimately we would like to see stamp duty removed for any first homebuyer up to the median metro house price,” he said.“The greatest gift a Government can provide is the ability for someone to get into their own home and more particularly so their first home.”
Troughton added that first homebuyers tended to buy more in the north and south as these areas have greater affordability. He also noted that apartments are being used as a “stepping stone” to people’s dream homes.