First-home buyers struggling with Sydney’s soaring property prices now have a compelling alternative. Adelaide’s recent introduction of innovative 2% deposit home loans, combined with significantly lower property prices, is creating real opportunities for homeownership. With Sydney’s median dwelling price reaching $1.2 million, many buyers are discovering that Adelaide offers a viable path to property ownership through modern no deposit home loan solutions.
The South Australian capital has become a magnet for interstate migration, especially from Sydney, where it now takes more than a decade of average wages to save a 20% deposit. Adelaide’s median dwelling price of $829,695 presents substantial savings, and new financing schemes are making homeownership achievable with minimal upfront costs.
Breaking: SA Introduces 2% Deposit Home Loans
South Australia has launched a 2% deposit home loan through HomeStart Finance as of June 2025. This initiative aims to assist first-home buyers who are locked out of the market due to upfront cost barriers.
The program applies to house and land packages with HomeStart’s builder partners and requires only 2% of the property’s value as a deposit. Eligible buyers must live in the property as their primary residence, and the scheme targets both metropolitan and select regional areas.
Premier Peter Malinauskas said the new program would “unlock homeownership for more South Australians” and support the building industry. It also fits into the state’s broader strategy to increase housing supply and employment in the construction sector.
Sydney Buyers Looking South
Sydney’s median dwelling price of $1,203,395 requires a $240,000 deposit under traditional lending. Adelaide’s equivalent deposit sits at around $166,000, offering a $74,000 difference.
However, with no deposit home loan products from lenders like Empower Money, buyers may bypass the deposit hurdle entirely. Its offerings give first-home buyers a realistic timeline, months rather than years, to enter the market.
Adelaide homes appreciated by 9.8% annually, showcasing both affordability and investment value. In comparison, Sydney’s prices dipped 1.3% in Q4 2024, while Adelaide grew 2.1%, making it a safer bet for budget-conscious but investment-savvy buyers.
Complete Guide to No Deposit Home Loans in Adelaide
- Federal Home Guarantee Scheme: Offers 5% deposit loans under the First Home Guarantee. Eligible buyers avoid LMI and benefit from capped property prices.
- HomeStart Finance Loans: State-backed loans offer lower deposits for specific borrower categories and property types.
- Family Home Guarantee: A federal initiative providing 2% deposit loans for single parents.
- Guarantor Loans: Enables borrowing up to 100% of the property’s value, secured by a family member’s equity.
HomeStart’s Game-Changing Offer
The HomeStart 2% deposit loan applies to new builds with selected developers. Eligibility includes permanent residency, steady employment, and capacity to meet repayments. The scheme includes income thresholds and serviceability assessments to reduce default risk.
Buyers with Certificate III qualifications can access additional benefits, including reduced deposit requirements for existing homes. This supports vocational pathways into homeownership.
A key advantage of HomeStart’s structure is the Repayment Safeguard, which limits payment volatility by capping repayments in the first year based on borrower capacity, not interest rate movements.
Federal Schemes Accessible in Adelaide
The federal government’s revised First Home Guarantee has expanded its accessibility in 2025. Now available without income caps or limited places, this scheme allows buyers to enter the market with a 5% deposit and no LMI.
In Adelaide, price caps for the scheme extend to $600,000. The Regional First Home Buyer Guarantee extends similar benefits to designated areas outside the metropolitan region, promoting broader access.
No Deposit vs Traditional Loan Costs
Loan Type
Deposit Required
LMI Cost
Total Interest
Monthly Repayment
Traditional (20%)
$166,000
$0
$290,000
$2,850
5% Deposit
$41,500
$15,000
$340,000
$3,200
No Deposit
$0
$25,000
$380,000
$3,400
Assumes $830,000 property, 30-year term, 6% interest rate
While no deposit home loan options come with higher overall costs, they enable immediate entry into rising markets, often a sound decision when balanced against long-term capital gains. Empower Money supports borrowers in understanding these trade-offs and provides transparent terms for better decision-making.
Top Adelaide Suburbs for First-Home Buyers
These areas benefit from state infrastructure investments and are well-positioned for continued growth. Many developments meet the eligibility criteria for HomeStart’s low deposit scheme.
- Gawler and Two Wells: 12% annual growth and suitable new developments
- Playford: 11.5% growth, existing amenities, and public transport access
- Salisbury: 10.3% growth, diverse housing, close to the CBD
Application Process: How to Get Started
The process of securing a no deposit home loan starts with assessing eligibility for available schemes and gathering required documents.
- Identification and proof of citizenship or residency
- Income and employment history
- Bank statements and existing debt disclosures
- Any qualifications (e.g. Certificate III) for additional benefits
Apply through HomeStart for state-backed options or explore private solutions with Empower Money to compare offers. Pre-approval, often available within 2-3 business days, allows buyers to act quickly in competitive markets.
Mortgage brokers familiar with South Australian programs offer value by navigating various lender requirements and optimising applications for approval.
Expert Forecast: Adelaide’s 2025 Property Outlook
Adelaide is projected to see moderate yet stable price increases in 2025. KPMG forecasts 2% annual growth, supporting long-term value without excessive inflation.
Interest rate cuts expected across 2025 will further increase affordability and borrowing power. These changes are likely to favour first-home buyers who act early.
Ongoing demand from Sydney and Melbourne migrants will continue to drive Adelaide’s housing market. Combined with the expansion of housing supply, the region remains one of Australia’s most promising for budget-conscious buyers.
Conclusion
Adelaide’s emerging no deposit home loan options, including the 2% deposit program from HomeStart and flexible solutions from Empower Money, are shifting the landscape for first-home buyers. These schemes lower financial barriers and align with broader economic trends favouring growth and affordability. With fewer upfront costs, predictable repayments, and government-backed support, buyers in 2025 have a real opportunity to secure property without waiting a decade to save.