Loan Unlocks Housing for South Australians

August 12, 2021

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Rebekah in front of her new home.

Junction will build more than 340 new affordable homes for South Australians over the next four years after securing a $25 million low interest loan through the National Housing Finance and Investment Corporation (NHFIC).

As well as refinancing existing debt, the loan will support 37 projects over the next 4 years delivering 341 new homes south of Adelaide. Of these 164 will be retained for social and affordable housing.

The loan provides Junction with increased certainty and security to grow its housing portfolio and offer more housing options to South Australians on low to moderate incomes.

“This is a long term, low cost stable and predictable funding solution,” Ms Palumbo said. “It is the key to unlocking home ownership for hundreds of individuals and families while freeing up the private rental market at the same time.”

Among new homebuyers is 29-year-old Rebekah Clayfield. Rebekah, who purchased into Junction’s Melrose Park development through the Affordable Homes Program.

It’s a dream come true for Rebekah, who had previously believed single home ownership was beyond her reach. “I had considered it for a couple of years,” she said.

“I started looking seriously in mid 2019 with the mindset to build so I could access the First Homebuyers Grant. I wanted to get out of the rental cycle and onto the property ladder as an investment in my future.”

Rebekah, a stock-broker’s assistant, said Melrose Park was the ideal location for her. “It’s halfway between my work and family,” she explains. “The infrastructure is fantastic. There’s plenty of parks and safe streets to walk around without having to live on a busy main road.

“Seeing my own home being built from the foundation up is really empowering.”

The NHFIC is a corporate Commonwealth entity dedicated to improving housing outcomes with a particular focus on affordable housing. NHFIC has raised $315 million in funds as a social bond to lend to community housing providers in Australia including Junction.

“Beyond four years, Junction has a further committed development pipeline expected to deliver another 234 outcomes of which 117 will be retained as social and affordable housing,” Ms Palumbo said.

“We are looking forward to working with the NHFIC to establish another debt facility to support this.”