Keystart helps Western Australians who are unable to meet traditional lenders’ deposit requirements. It provides first home buyers and subsequent home buyers with low-deposit home loans and no Lenders Mortgage Insurance. Keystart home loans are open to residents of WA who are purchasing an owner-occupied property in WA and meet eligibility requirements.
Keystart is a Western Australian government initiative, created in 1989 and owned by the Housing Authority. Keystart has since helped over 100,000 Western Australians own a home. Keystart has announced a partnership with Bendigo and Adelaide Bank, a private lender who acquired $1.35 billion of the Keystart loan portfolio.
Keystart provides a range of low-deposit home loan products for metro and regional areas of Western Australia. Property price caps, income limits and deposit amounts apply.
Keystart Standard Home Loan
This is the standard Keystart home loan available in metro, regional rural and remote areas. The following features apply:
- 30-year loan term
- No Lenders Mortgage Insurance
- No loan-keeping fees/li>
- Additional payments allowed/li>
Shared Ownership Home Loan Scheme
The shared ownership home loan scheme is geared towards low to medium income earners who are unable to secure a home loan based on their income. The Housing Authority will co-sign up to 40% of a property, with a view of the borrower purchasing in full when financially able. Terms and conditions apply, including income limits and maximum property values.
The following loans are eligible for shared ownership:
- SharedStart Home Loan: Minimum 70% ownership, 2% dep and 0% savings required.
- Aboriginal Home Loan: Helps Aboriginal people and Torres Strait Islanders into home ownership. Minimum 60% ownership, HA contributes a max of $150,000.
- Disability Home Loan: Helps people with disabilities and/or carers move into home ownership. Minimum 60% ownership, HA contributes a max of $150,000.
- Sole Parent Home Loan: Assists a single parent in keeping their family home after a loss or end of relationship. Minimum 60% ownership, HA contributes a max of $150,000.
- GoodStart Home Loan: Designed for Housing Authority tenants who are ready to stop renting and move into home ownership. Minimum 60% ownership, HA contributes a max of $150,000.
Keystart Country Home Loan
For farmers and small business owners in regional, rural or remote Western Australia who want to build, purchase or renovate a home for themselves, dependents or staff. Requires 20% deposit using farming property as security or 10% deposit using residential property as security.
To be eligible for a Keystart loan, borrowers must meet the requirements of the home loan they are applying for. Applicants must:
- Be aged over 18
- Be a permanent resident of Australia
- Live in WA
- Meet income level requirements for the loan in question
- Intend to buy or build in WA
- Intend to live in the property, not rent it out
- Not be a current homeowner
- Not be looking to buy an extra property
Keystart home loans have fewer features than a traditional home loan, but borrowers are able to switch to a different lender in the future, when it is financially viable. Keystart is a non-banking lender, so home loans are not packaged with other financial products.
Features of Keystart home loans include:
- Low deposit (2% to 7% depending on location and purchase price)
- Loan terms of up to 30 years
- Ability to make extra repayments at any time
- Change repayment frequency
- No Lenders Mortgage Insurance required
- No loan-keeping fees
- Ability to build or buy an existing property
- Online client portal where you can access loan account details (registration required)
- Loan increase allows you to borrow additional funds or, in the case of a shared loan, purchase additional shares from the Housing Authority
All Keystart home loans come with the same variable interest rate. The rate is calculated based on the average owner-occupied, principal and interest variable rate of Australia’s four major banks.
Keystart home loans are principal and interest, as they are designed to be transitional home loans.
The first step is to find out if you qualify for a Keystart loan. You can do an eligibility check online in less than 10 minutes on the Keystart website. If you are not eligible at this stage, Keystart has an educational program in place to help potential borrowers get on track to meet the eligibility requirements.
Qualified borrowers can apply online at any time for a Keystart home loan. It takes up to 30 minutes and you will need the following details when you apply:
- Proof of identity
- List of assets and their value
- Eligibility check reference number and security PIN
- Financial situation details
After you apply, a Keystart home loan consultant will contact you to go through your application. If you meet the lending criteria, you’ll receive pre-approval and can then make an offer on a property.
Redraw facilities are available on the following loan products, but be aware that redraw fees may apply:
- Keystart Standard Home Loan
- Aboriginal Home Loan (full ownership)
- Disability (full ownership)
- GoodStart (full ownership)
- Sole Parent (full ownership)
For shared ownership loans, borrowers can redraw to purchase additional Housing Authority shares.
Redraw is not available on the SharedStart or Country Home Loan.
Yes. Borrowers are encouraged to make extra repayments when possible to pay off their loan sooner.