Keystart to relax the borrowing criteria for its low deposit home loan
Want to get into a home of your own but it always looked out of reach? Well now is your chance to make the most of new changes to borrowing criteria and secure a low deposit home loan! In addition to Labor and Liberal’s upcoming Federal Election, Keystart announced their plans to increase the income limits for its Low Deposit Home Loan. This means even more Western Australians will be able to get into their new home sooner than they thought possible. Read on as we unpack the massive news and what it could mean for you.
Labor and Liberal’s election promises to first home buyers
If you’re on the cusp of buying your first home, we’ve got good news for you. With the Federal Election just around the corner, both parties have put forward their election promises to voters and it’s looking favourable to first home buyers. Last week the Coalition unveiled its policy allowing first home buyers to purchase a property with a 5% deposit.
The First Home Loan Deposit Scheme will reduce the minimum deposit required to purchase property from 20% to 5%. The government will underwrite a loan of 15% of the value of the home, to be treated as part of your deposit. It will also see lenders’ mortgage insurance (LMI) scrapped for first home buyers, which is equivalent to a $8,000-$10,000 saving.
Labor also adopted the policy and committed to match the Coalition’s promise, meaning that one way or another, it seems likely to become part of our country’s housing policy. The scheme is however limited to 10,000 first home buyers and is only eligible to:
- Singles earning less than $125,000 annually
- Couples earning less than $200,000 annually combined
The eligibility changes to Keystart’s Low Deposit Home Loan
The Keystart Low Deposit Home Loan is a variable interest rate loan for people striving to achieve their homeownership dream or improve their quality of housing. Under this scheme, a low deposit home loan is available to help them finance an affordable home where other traditional lenders cannot provide assistance.
In light of Labor and Liberal’s election promises, Keystart have also announced its plan to help first home buyers. As of 1 July 2019, Keystart will be increasing the maximum income limits for their low deposit home loan by $15,000 for singles & couples and $20,000 for families.
This means if your household annual income was too high to apply for Keystart’s Low Deposit Home Loan, you may now be eligible. For those looking to buy or build a home valued up to $480,000 in the Perth Metro Area, your income can now be up to:
- $105,000 for singles
- $130,000 for couples
- $155,000 for families
By expanding the eligibility criteria, the government estimates around 11,000 additional households will qualify to apply for Keystart finance. However, this is for a limited time only. The changes will come into effect for the second half of the 2019 calendar year and revert back to the current levels from 1 January 2020.
*Please note: “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.” – Keystart, May 1, 2019
*Keystart Terms and Conditions, fees and charges and normal lending criteria apply. Rates and limits stated are subject to change without notice.
What this means for WA home buyers
With a low deposit, you’re able to reach your homeownership dream sooner. And thanks to the support of Keystart, the State & Federal Governments and Now Living, you’ll be in your new home in no time! There’s never been more favourable conditions for first home buyers in WA than right now. So it’s time to take advantage of this rare opportunity while the changes are still in effect.
At Now Living, we deliver the smarter, hassle free way of getting first home buyers into a brand new home. We know it can be an overwhelming process, so we’ve made it easy with a range of move-in ready, all-inclusive* packages starting from $269K*.
And our expertise in affordable homes stretches beyond our house and land packages. As a first home buyer with Now Living, you’ll receive exclusive access to products and options thanks to our relationship with industry partners. For instance, our partnership with The Loan Company* ensures you secure the best finance options for your situation.
^ *Terms & Conditions Apply • BC: 6415
The time to buy is RIGHT NOW! Get into your new home with the help of Now Living and our network of industry professionals. Contact us today.