House of Assembly Fifty-First Parliament, Second Session (51-2) 51 2 Parliament of South Australia House of Assembly published Answers to Questions HomeStart HOMESTART Ms CHAPMAN House of Assembly Bragg Deputy Leader of the Opposition HOMESTART 213 Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (31 July 2007). Why are rural applicants seeking HomeStart Finance required to have a 15 per cent deposit when metropolitan applicants are only required to have a 5 per cent deposit, and will the existing 15 per cent deposit applicable be amended to take into account the latest Census figures which show several rural towns now have a population larger than 1,500? The Hon. J.W. WEATHERILL House of Assembly Cheltenham Minister for Families and Communities Minister for Aboriginal Affairs and Reconciliation Minister for Housing Minister for Ageing Minister for Disability Minister Assisting the Premier in Cabinet Business and Public Sector Management HOMESTART The Hon. J.W. WEATHERILL (Cheltenham—Minister for Families and Communities, Minister for Aboriginal Affairs and Reconciliation, Minister for Housing, Minister for Ageing, Minister for Disability, Minister Assisting the Premier in Cabinet Business and Public Sector Management): When HomeStart Finance considers deposit requirements in regional locations, several factors are considered. These include regional development, environmental factors, property sales and population (current and projected). HomeStart's guidelines for deposit requirements are associated with the inherent risk to the organisation, of which all of the factors mentioned above are taken into consideration. HomeStart reviews its country lending policies on an annual basis, with reference to latest Census figures. The most recent review acknowledges that many regional centres are experiencing positive underlying medium and longer term economic prospects, which are being taken into consideration. The frequency and number of property sales in a region can also affect the sale price of a property if HomeStart were placed in a position of forced sale. The low number of sales in some regional areas can increase the prosperity and magnitude of a loss occurring. Finally, it should be noted that HomeStart does not have a blanket deposit requirement of 15 per cent for all regional areas. In some regional locations, HomeStart's deposit requirements are the same as the deposit requirements for metropolitan areas.