HomeStart Finance

1387 The Hon. A. PICCOLO (Light) (24 September 2019). Will loan recipients of HomeStart Finance's interest free deposit gap loan scheme be required to take out mortgage insurance?

The Hon. S.K. KNOLL (Schubert—Minister for Transport, Infrastructure and Local Government, Minister for Planning): I have been advised by HomeStart Finance:

HomeStart does not require any customers to take out lender's mortgage insurance (LMI). Instead, HomeStart has a loan provision charge (LPC) which is significantly cheaper.

Using an example $400,000 home purchase, HomeStart's LPC is more than $10,000 cheaper than LMI.