More homeowners 'paying it forward' by refinancing

Most home lenders want to keep their customers – but at HomeStart, seeing a customer refinance to another lender is something to celebrate. 

Increasing numbers of HomeStart customers are refinancing because they have built equity in their home – and grown their financial confidence. 

Refinancing from HomeStart when the time is right is spoken about from the outset, with customers being provided resources to assist them in taking that next step.
 
Meanwhile, each refinancing customer is returning funds to HomeStart, which enables the State Government-backed lender to help even more South Australians struggling to enter the housing market.

In the five years between 2015 and 2019 there were 4,428 loans refinanced, compared to 5,680 refinanced between 2020 and 2024 – a 28% increase. 

HomeStart CEO Andrew Mills said that more than 90% of the value of all loans being discharged with HomeStart come from customers refinancing to another lender compared with less than 70% a decade ago.

A combination of rising house prices boosting equity and lenders keen to gain new customers is behind the rise.

“When a customer switches to another lender, it ultimately means we have helped them enter the housing market and supported them to take that next step in home ownership as their circumstances change,” Mr Mills said.

“Many customers tell us they feel that by leaving HomeStart, they are paying it forward to allow someone else the opportunity to get their start through us. They’re proud to know that the funds can be used to help other South Australians who feel shut out of the housing market.”

Tanya and Jason Presland have just refinanced from HomeStart to another lender and have nothing but good things to say about their experience.

Tanya, 44, and Jason, 50, took out a HomeStart loan in 2021 when running their own small paving business, and were unable to get a home loan elsewhere.

Just four years later, the couple has been able to refinance to a lender and a loan that better suits their changing circumstances.

“We’ve had a great experience with HomeStart. If it weren’t for them, we would never have got into our own house four years ago,” Ms Presland said.

“We have now refinanced to a bank and the process at HomeStart’s end has been brilliant.

“For anyone who may need a bit of a leg up getting into their home, I highly recommend HomeStart.”

Tanya said it was a good feeling to know that discharging her loan with HomeStart meant other South Australians could benefit.

“By us not being with HomeStart anymore we’ve actually created room for someone else to be helped – I think that’s really good,” she said.

Mortgage Choice broker Martin Roach arranged the Preslands’ finance through HomeStart four years ago and supported them to refinance when they were ready this year.

“When we reviewed their options to buy, I recommended HomeStart - as I do with many clients in their situation,” Mr Roach said.

“And once their loan was in place, we reviewed it annually to ensure it was still meeting their needs. When Tanya and Jason had built enough equity, we were able to help them refinance to a new loan that suited their circumstances.”