Keystart is a WA Government initiative that aims to provide an affordable pathway for West Aussies into a home of their own.
While most lenders and banks require you to save up a 5 - 20% deposit before applying for a home loan, Keystart offers low deposit home loans with a minimum deposit from just 2%.
Whether you’re looking to buy an established property or build your own dream home on a tight budget, a Keystart home loan makes it easier to achieve your property dreams with:
- $0 monthly account fees
- No Lender's Mortgage Insurance required, saving you thousands of dollars
- Reduced repayments during construction
Thinking of applying for a Keystart home loan?
Answer a few quick questions to find out if you qualify today!
Keystart Frequently Asked Questions
What is Keystart?
Keystart is a WA government initiative designed to help people get into their own home faster by reducing entry costs. Keystart offers low deposit home loans with no lender's mortgage insurance.
Who is eligible for Keystart home loans?
To be eligible for a Keystart loan you will need to meet the following requirements as a minimum;
- be 18 years or older
- be an Australian Citizen or Permanent Resident
- be living in Western Australia and wanting to buy or build here
- have an income within our maximum limits (check our other FAQ's)
- not own another home or land at the time of settlement of your Keystart loan
- plan to live in your home for the duration of your loan with Keystart
- have enough funds available to cover all costs associated with the purchase, including your deposit, fees and any moving costs.
I have bad credit. Can I still get a home load?
Yes! Keystart can assist home buyers who have a poor credit rating, defaults, or have declared bankruptcy in the past.
To make the approval process even easier, Keystart also removed their Debt Servicing Ratio (DSR) requirement from their eligibility criteria in 2019.
This means that you could still be eligible for a Keystart loan even if you have a car loan, personal loan, or credit card which exceeds 10% of your monthly income.
I'm not a first home buyer, can I still get a Keystart loan?
Yes! Keystart loans aren't just for first home buyers, however, you will still need to meet the minimum requirements in order to be eligible. Find out whether you qualify for a Keystart home loan here
What is the difference between a Keystart loan and a bank loan?
Getting access to finance through a traditional bank loan can be difficult for home buyers who have little to no savings, are on a lower income, or have defaulted on other loans in the past.
To help more West Aussies overcome these barriers, a Keystart loan makes it much easier for applicants to borrow money by offering low deposit home loans with no LMI.
- How do I apply for a keystart loan?
What is Lender's Mortgage Insurance?
Lender's Mortgage Insurance (LMI) is an insurance policy that protects the lender (such as a bank) in case the borrower (you) can’t afford to meet their home loan repayments.
If you default on your loan and the sale of your property doesn't cover the unpaid value of the mortgage, lenders will claim on the LMI policy to make up the difference.
LMI is a one-off fee that is either paid upfront by the borrower or added onto the total amount of the loan. The more money you borrow to purchase your home, the higher the amount of LMI you’ll need to pay.
Unlike other lenders that offer low deposit home loans, Keystart doesn’t require you to pay LMI, which means you can spend more of your money on paying down your loan and less time waiting to save for a bigger deposit.
Can I refinance a Keystart loan
Yes! Keystart is a transitional lender, which means that they encourage all home buyers to refinance as soon as they’re financially ready.
Depending on your financial goals and situation, you may wish to refinance your loan in order to find a better interest rate or get access to loan features such as flexible repayments.
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