What is a Keystart Home Loan & How Do I Qualify?
Buying your home is an exciting time. But how exactly does the process work? Whether you’re buying your first home or a subsequent one, it could be one of the biggest investments you ever make. So it’s important to make the right decisions so you don’t get any nasty surprises along the way. And it all starts with finding the right loan.
With so many different types of home loans available, you need to know which one is best suited to you and your set of unique circumstances. You need to evaluate the interest rates and known fees for a range of home loan products so you can make an apples to apples comparison. And of course, you need to find out if you qualify for it. To help you get started, we’ve put together some of the main facts about Keystart home loans and the current eligibility criteria.
What is a Keystart home loan?
The Keystart home loan is a variable interest rate loan which can be used by owner-occupiers to buy an established home or build a new house. Ideal for people striving to achieve their dreams of homeownership or perhaps looking to improve their quality of housing, the loan is available to both first and subsequent home buyers across Western Australia.
An initiative of the State Government, Keystart helps you unlock your future by allowing you to finance an affordable home where other home lenders cannot provide assistance. Under this scheme, the following features are provided:
- A 2% deposit of which only 1% needs to be genuine savings
- Reduced repayments after Construction
- No mortgage insurance
- Loans to those who have had defaults or been bankrupt
Who can qualify for a Keystart Home Loan?
In December 2016, some important changes were made to Keystart’s lending criteria to help many Western Australian singles, couples and families to buy a home of their own. As a result of the 2014-15 Budget, Keystart had to tighten their lending policies which left a number of Western Australians unable to get a loan because they either didn’t earn enough or they earned too much to qualify.
The changes announced saw Keystart’s metro income limits increase up to $20,000 as of 1 January 2017. This meant these people no longer have had to stay trapped on the rental roundabout or still be living at home with mum and dad. Now, more people are able to enter the property marketing and Keystart is expected to approve 2,200 additional loans up until June 2020.
The new income limit in the Perth Metropolitan Area has resulted in the following threshold changes:
- Singles – Earning up to $90,000, previously $75,000
- Couples – Earning up to $115,000, previously $95,000
- Families – Earning up to $135,000, previously $115,000
Why choose Now Living
At Now Living, our goal is to help remove the uncertainty involved in buying your new home. So starting from the moment we first speak with you, we will work together to ensure there are no surprises or hidden costs waiting for you at the end.
One way we do this is by offering affordable house and land packages to suit all budgets and situations. In partnership with The Loan Company, we can help assist you in finding the home and the loan that’s best for you.
As one of our trusted partners, The Loan Company can provide you with the credit assistance needed to make your dreams of homeownership a reality. Offering a systemised and streamlined service that’s second to none, now you won’t have to deal with any of the stress that’s normally associated when organising finance to take out a home loan.
Want to get into your brand new home sooner? Fill out this form and our team of experienced professionals will be able to assist you further.
*Keystart Loans Ltd Australian Credit Licence 381437. Now Living provides Keystart with referrals, who is the provider of credit assistance. Now Living does not receive any benefits from this relationship. Should you opt to make reduced repayments during construction, the balance of the loan repayments will be added onto the outstanding loan balance at the end of construction and your loan repayments will be adjusted accordingly.
^Harrisdale Pty Ltd trading as The Loan Company Australian Credit Licence Number 386355. Now Living has a referral agreement with Harrisdale Pty Ltd t/as The Loan Company who is the provider of credit assistance. Now Living does not receive any benefits from this relationship.