South African government extends $10,000 interest-free home loan scheme

The Starter Loan program provides an interest-free loan of up to $10,000 to help cover borrowers’ initial costs when buying a home.

An additional $10 million was allocated for the seed loan during the 2021-22 mid-year budget review, which could see more people accessing the program.

Borrowers must also qualify for the main “HomeStart Loan” program, which provides financing to borrowers with a 5% down payment or an 8% down payment for constructions.

The start-up loan is also “repayment free”, which means that no repayments are required for the first five years.

After this time, if the loan is not fully repaid, it may be reviewed and transferred to the main HomeStart loan balance.

Recipients can repay their loan interest-free over five years if they meet eligibility criteria, such as having a net household income of less than $65,000 or $90,000 for couples.

Since the launch of the system at the end of 2019, 705 Starter Loans have been approved:

  • Fiscal year 2021-22: 217 (this year to date)
  • Financial year 2020-21: 378
  • Financial year 2019-20: 110

The total value of start-up loans has reached $6.4 million since its launch, and the value of homes built or purchased under the program is $201 million.

Of those who were approved for a loan, 70% lived in private rentals and a small number were Housing SA tenants.

Social Services Minister Michelle Lensink has urged eligible South Australians looking to buy their own homes to consider a start-up loan.

During the COVID-19 pandemic, the statistics clearly show that the start-up loan has increased, which could be partly due to the fact that we have expanded the eligibility criteria to include people with moderate incomes,” said Ms. Lensink.

She said that in addition to the seed loan initiative, the state government is delivering 1,000 new affordable homes across the state, priced at prices no higher than $422,050.

That’s “well below” the median Adelaide property price of over $731,000, according to Domain’s latest report.

“Many of these homes are available through share shares and I urge South Australians looking for accommodation to jump over to our new HomeSeeker SA website for more information on how to save and to budget for a home and exclusive affordable home sales,” Ms. Lensink said..

This is in addition to the state’s $15,000 first-time homeowner’s grant available when borrowers build a new home.

Both schemes mean South Australian homeowners could access up to $25,000 to build a brand new home.


Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.


Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Fast turnaround times, can meet 30 day settlement
  • For purchase and refinancing, down payment min 20%
  • No ongoing or monthly fees, add 0.10% compensation

Variable More details

Homeowner Accelerates – Celebrate (LVR
  • We lower your rate based on the amount you have paid back on your loan
  • Automatic Rate Matching
  • No upfront or ongoing fees

Fixed More details

Fixed Mortgage Loan 1 year (Capital and Interest) (LVR
  • Make up to $20,000 in additional repayments per fixed term
  • Redraw available – allows you to access any additional loan repayments you have made
  • Choose to lock rates for 90 days (fees apply)

Variable More details

Owner Occupied Variable, Principal & Interest (Refinance Only)(LVR
  • No application or ongoing fees.
  • 100% free clearing sub-account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.


The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website.,, and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

last articles


Rachel Horane

Rachel is a financial journalist and joined Savings in 2021. Coming from the FinTech space, her interests include lending technology innovation, real estate, investing, and more. Passionate about educating and informing people about their finances, she hopes to increase the financial literacy of ordinary Australians.

to post

Save smart.
Subscribe to free money newsletters.

Previous Splash Financial Student Loan Refinance Review • Benzinga
Next housing loan: the share of affordable housing loans is expected to reach 10% in the next 2-3 years: Equitas SFB MD