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HomeStart, a low-deposit lender backed by the South Australian government, has expanded household income caps amd maximum loan amounts for its Advantage Loan.
The Advantage Loan is an additional loan product on top of a HomeStart mortgage that can boost a first home buyer's budget to buy or build a home, as long as the combined value of both loans is under $750,000.
The additional loan is only repaid once the client’s home loan is paid off. This aims to ease affordability pressures in the early years of home ownership.
Previously, the Advantage Loan enabled HomeStart mortgagors earning less than $75,000 to access the product.
However, effective immediately, HomeStart has increased the household income cap to $85,000, after tax.
The update also increases a borrower's home-buying budget by up to $90,000, $20,000 more than previously.
For example, under the new criteria, a household earning $60,000 could purchase a property worth around $529,000, compared with $476,000 previously — an increase in borrowing capacity of more than $50,000.
HomeStart said the expanded criteria would give brokers additional options for clients who may not qualify for a traditional mortgage or who need support with deposit or cost requirements.
It noted that the expansion aligns with its objective to provide lending options to South Australians who may face challenges meeting traditional deposit or serviceability requirements and comes amid growing house prices in the state.
HomeStart CEO Andrew Mills said the changes would enable brokers to assist a wider range of clients.
“This update means brokers can assist a broader range of clients who are ready to buy but need additional support to bridge the gap,” Mills said.
“By increasing both the income limit and the maximum loan amount, we’re creating more opportunities for conversations between brokers and homebuyers.”
He added that HomeStart would continue collaborating with brokers to ensure they can best support clients under the new settings.
“Every client’s situation is different, and we want to make sure brokers have more ways to support them,” the CEO said.
“We’ll continue working closely with our broker network to find practical ways to make home ownership possible for more South Australians.”
The expansion is one of several recent initiatives aimed at improving housing access for Australians. It follows the October 2025 expansion of the federal Home Guarantee Scheme, which lifted the cap on the number of available places and removed income limits.
Under the scheme, eligible buyers can purchase a home with a deposit as low as 2 to 5 per cent, with the government acting as guarantor for the remainder of the loan deposit through participating lenders (thereby avoiding the buyer’s lender’s mortgage insurance and reducing upfront costs for borrowers).
Property price caps have also been increased, making homes worth up to $1.5 million in Sydney and $1 million in Brisbane and Canberra eligible under the scheme’s updated limits.
By lowering financial barriers and removing the previous 50,000-participant cap, the treasury forecasted an additional 20,000 guarantees in the first year.
[Related: Home Guarantee Scheme expansion kicks off: Unpacking the changes]