Over 40 more suburbs available for Keystart low-deposit loans

Dec 14, 2022, 11:07 AM

The increase to the Keystart property price limit gives aspiring homeowners significantly more choice when looking to buy or build.

Title : Over 40 more suburbs available for Keystart low-deposit loans

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News date : Dec 14, 2022, 11:07 AM

The increase to the Keystart property price limit gives aspiring homeowners significantly more choice when looking to buy or build.

Keystart is now offering its low-deposit finance for established and new homes worth up to $560,000. Previously the price limit was $480,000 in the Perth metropolitan area and $500,000 in regional areas.

The price limit in the Kimberley and Pilbara remains at $650,000 and $750,000 respectively.

According to reiwa.com, there are 113 suburbs in Perth with a median house price of $560,000 or less, which would meet the criteria for a Keystart low-deposit loan. This is over 40 more suburbs than under the previous limit, including central locations such as Belmont, Redcliffe, Bently and Balcatta.

REIWA CEO Cath Hart welcomed the changes.

“Keystart is a unique offering for Western Australians that helps more people, particularly first-home owners, achieve their dream of property ownership,” she said.

“These changes to the property value thresholds are sensible and bring the maximum value in line with the Perth median house price, which currently sits at $540,000.”

Keystart provides a range of low-deposit loans – as low as 2 per cent - and does not charge lenders mortgage insurance, assisting buyers who cannot save a large deposit.

Income limits of $105,000 for singles and $155,000 for couples apply to purchases in the metropolitan area. In regional areas, the income limits are $125,000 for singles and $155,000 for couples.

The limits are higher in the Kimberley and Pilbara.

Keystart does charge a higher interest rate than traditional lenders, but also encourages homeowners to move to other lenders when they build equity in their home.

Keystart CEO Paul Graham said the rise reflected the increase in the cost of housing in WA to ensure Keystart customers had a wide choice of affordable homes and new build options.

“The cost of building or buying a home has risen over the last two years,” he said.

“This [change] will help ensure Western Australians can continue to get their foot on the property ladder by accessing Keystart’s low deposit home loans.”

Another Keystart initiative – the Urban Connect Home Loan – is specifically designed to make medium and high density living more accessible and support the State Government’s urban infill priority. It aims to encourage eligible buyers to purchase closer to the city, transport hubs and established local amenities.

It also only requires a low deposit and is available to singles earning up to $180,000 a year to purchase a home for $550,000 or less, and couples and families with a combined income of up to $200,000 a year to purchase a home for $650,000 or less.

Urban Connect customers can purchase apartments in medium and high-density buildings which have a minimum of two bedrooms. The two-year pilot will provide 300 loans across 189 suburbs in the Greater Perth area and is available for new and established homes.

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