Keystart to help struggling first home buyers
Keystart is an initiative from the government to assist low income earners to purchase property. It is a low deposit variable loan that is offered to assist buyers in purchasing their first home. Keystart’s loan is only available for owner occupiers, who can then buy or build a home anywhere in Western Australia.
How can you qualify for Keystart?
Below is a link that will take you to the keystart website, from there you fill out the questionnaire and they will let you know if you are illegible and if so how much they can loan you.
Are there limits to loan amount?
NOTE: Keystart is increasing the maximum income limits for our low deposit home loan for the second half of the 2019 calendar year. The income limits will increase by $15,000 for singles and couples and by $20,000 for families for first and subsequent homebuyers and are effective from 1 July 2019.
|Region||Current Income Limits||New Income Limits||Property Purchase Price Cap|
|Metropolitan area||$90,000 (Singles)$115,000 (Couples)$135,000 (Families)||$105,000 (Singles)$130,000 (Couples)$155,000 (Families)||$480,000|
|Regional Areas (excluding Kimberley & Pilbara||$110,000 (Singles)$135,000 (Couples)$135,000 (Families)||$125,000 (Singles)$150,000 (Couples)$155,000 (Families)||$500,000|
|Kimberley||$120,000 (Singles)$150,000 (Couples)$150,000 (Families)||$135,000 (Singles)$165,000 (Couples)$170,000 (Families)||$650,000|
|Pilbara||$150,000 (Singles)$180,000 (Couples)$180,000 (Families)||$165,000 (Singles)$195,000 (Couples)$200,000 (Families)||$650,000|
When are these changes effective from?
The increased income limits will be available to all applicants who enter into sales contracts to purchase an established property or build a new home from 1 July 2019 until 31 December 2019. Keystart will accept applications using the higher income limits from 1 May 2019 to give consumers confidence they can begin their search for a home knowing what they may be eligible to borrow. The sales contract must settle after 1 July 2019. The income limits will then revert to the current levels from 1 January 2020.
Deposit and savings requirements
|The amount you buy your home for||The deposit required|
|Up to $480,000||2% deposit *|
|$480,001 – $500,000||5% deposit|
|$500,001 – $650,000||7% deposit|
* Higher of 2% or $2,000 is required
|Term of loan||30 years|
|Maximum other debts||My existing monthly debt repayments are less than 10% of my gross income|
|Lenders mortgage insurance||Not required|
|Loan keeping fees||0%|
|Statement frequency||6 monthly|