When it comes to finance for buying or building a house, it can be stressful trying to save the necessary deposit. For instance, how can you save 20% when you have weekly rent repayment? That’s why Keystart was designed to help people get into their new homes faster by having lower entry costs. Keystart is a name many Australian’s have heard of, but not many people may know what they do. Because of this, Move Homes has created a breakdown to give you all the facts about them!
In a nutshell, Keystarts offer people low deposit home loans. Meaning instead of the traditional 5% to 20% minimum deposit, the deposit can be as little as 2%. They don’t have Lender’s Mortgage Insurance or any monthly account fees, so it’s cheaper and easier for people who have tight financial situations. They are also a traditional lender, meaning they encourage people to refinance with another lender when they are ready to do so.
Many people believe that Keystart are a government agency. However, this is not the case as they are a private organisation. Their home loan process is quite simple. But, in order to first be eligible to receive a loan you must meet the minimum requirements – which have been placed below. You can also fill out a quick 5 minute questionnaire on their website to see if you meet the requirements.
• Must be an Australian Citizen or permanent resident.
• At least 18 years of age.
• Be living in Western Australia and wanting to buy or build here.
• Have an income within their maximum limits.
• Not own another home or land at the time of settlement of your Keystart loan.
• Plan to live in your home for the duration of your loan with Keystart (so you can’t rent it out).
• Have enough funds available to cover all costs associated with the purchase, for instance your deposit, fees and any moving costs.
Once you have qualified for a loan, you will find out how much you can borrow. It usually takes between 20 to 30 minutes on their website or over the phone, and Keystart will go over your application and contact you if they require anymore documentation once it’s complete. As soon as you have pre-approval, you’re able to make offers on properties within the pre-approval amount.
Here is when you have made a successful offer and all conditions are met. Your loan documents are sent to you to review, sign and return to Keystart. These documents formalise the contract between you and Keystart. It’s important you take the time to read these documents carefully.
Settlement is the official process of transferring ownership from the seller to the buyer (so putting the property into your name). You will be sent the required documents and told the amount of funds you’ll need to make. You’ll also need to arrange building insurance on your home, and send confirmation before your settlement date. Once settlement has occurred you’ll be allowed to move into your new home or start building your new home.
Keystart aim to support their customers during their home loan journey. For example, during the first 12 months they will regularly check in and see how you’re going. Plus, you can also track and manage all your loan details on the Client Portal on their website.
Find out more about a range of grants and schemes to help first home buyers get into their new home.
If you think Keystart can help get you moving, send us a message and we’ll be in touch!
Over the last 50 years we have proudly built over 15,000 homes for Australian families. We have the same values today as we did in 1969 when we built our first home in Light Street Dianella.
