FAQs about this loan
Your deposit: The more of your home loan you can afford to pay as an upfront deposit, the lower the interest rate you may be offered. A low deposit home loan (anything less than 20 per cent of the property value) will typically have a higher interest rate and may require lenders mortgage insurance or help from a guarantor. A home loan deposit is your initial contribution to the purchase price of a property. It means that you own a small portion of the home. When you have a stake in the property it reduces the lender's risk.
- Q What the impact is coronavirus (COVID-19) having at Keystart? A
- Q Can I get a loan if my sole source of income is Centrelink payments? A
You may qualify for a loan based solely on Centrelink income however the loan amount will be based on your income level and may not be enough to buy a property.
- Q Do you do interest only loans? A
No. As we are focused on helping more people start their home ownership journey, we do not offer interest only loans or loans for an investment property. All of our loans are principal and interest home loans.
- Q Can I buy an investment property? A
No. As we are focused on helping more people start their home ownership journey, we do not offer interest only loans or loans for an investment property. All of our loans are principal and interest home loans and are for owner-occupiers. You are required to occupy the property as your principal place of residence.
- Q Other than the deposit, what other costs are there? A
Some of the other upfront costs you may incur when buying a home include application fees, legal/conveyancing fees, transfer fees, government stamp duty, inspection fees (building/termite), settlement agent fees, building insurance and water/shire rates.
You may also need to consider your moving costs if you need to hire a truck or removalists. Maybe friends and family can help?
- Q Can I buy an established house? A
Absolutely. Once you have conditional approval you can start house-hunting for your home. There are some advantages in buying an established house. Read more in our Build or buy guide.
- Q Can I build a new home? A
Absolutely. Once you have pre-approval you will know how much you will be able to borrow, and therefore how much you can spend. You might like to to weigh up your options of building vs buying a new home - read our guide for some helpful tips.
- Q Can I buy anywhere? A
Yes, anywhere within Western Australia. Once you have conditional approval you will be able to start looking for your new home. You can use the finance to buy an established home or to build. Remember to take into consideration the distance to your work and other facilities you want nearby.
- Q Am I eligible? A
Keystart has some set eligibility criteria. You can find out more about your loan requirements or you can find out if you would be eligible by completing pre-qualification. This takes about five minutes.
- Q Do I have to be employed to get a loan? A
Yes, you do need to have a stable income or regular employment for at least six months.
Keystart accepts some Centrelink benefits as income, but your total income affects the amount you will be able to borrow.
- Q Can I only use Keystart if I go with a builder? A
No. Once you have pre-approval you are able to go home-hunting for whatever you like. An apartment, an existing home in an established area or a new house and land package. The choice is yours.
We support you all the way through the loan application process too with a dedicated home loan specialist working with you from your first enquiry through to settlement.
- Q Do I need to show savings history? A
No. We do not require savings history but will request statements for any bank accounts you have as well as statements for any existing loans, credit/store cards and rental history. This is so we can establish your ability to manage your finances.
- Q What type of home can I buy? A
With Keystart's Low Deposit Home Loan you either can purchase an established property, build a new home through a registered builder or buy a newly constructed property. You can build an apartment, a townhouse, a stand-alone home or a unit - the choice is yours!
- Q I already own a home but want to apply for a Keystart loan as well. Is that possible? A
Unfortunately you cannot be considered for any Keystart products if you already own a property. Keystart assists people to get started on their home ownership journey. We require you to owner occupy the home for the life of the Keystart loan.
If you are in a situation where you will not own a home at the time of settlement, for example if you are in the process of selling your existing home, you may still be eligible. Get in touch to find out more.
- Q Why have the income limits been set at specific caps for each region? A
Keystart has undertaken a great deal of research to determine the income levels that assist the greatest number of Western Australians into a reasonable standard of housing. These limits are continually reviewed and will be amended if necessary.
- Q I have owned a property before. Can I apply? A
Yes you can. Subsequent home buyers are eligible to apply as long as you don't currently own or part own any other home or land.
- Q Can I rent out my property? A
No. We aim to help more people on the journey to home ownership. In line with this vision, we do not offer loans for investment properties. Under the terms and conditions of the Offer to Borrow and the Keystart mortgage, you are required to occupy the property as your principal place of residence. This means you are not able to rent the property out.
Income test
The Scheme includes an income test for:
- singles – your taxable income for the previous financial year must not be more than $125,000.
- couples – your combined taxable income for the previous financial year must not be more than $200,000.
The income test is assessed by your lender.
For Scheme reservations made up to 30 June 2020, the relevant Notice of Assessment (NOA) from the Australian Taxation Office is for the 2018-19 income year. However, if you hold that reservation for too long (e.g. more than 90 days), your relevant NOA may end up being the 2019-20 income year.
For Scheme reservations made from 1 July 2020 to 30 June 2021, the relevant NOA is the 2019-20 income year.
Prior ownership test
The Scheme is in place to assist genuine first home buyers.
The prior ownership test requires you to not have ever owned:
- a freehold interest in real property in Australia
- an interest in a lease of land in Australia with a term of 50 years (or more), or
- a company title interest in land in Australia.
These tests apply for property interests in all states and territories of Australia, regardless of whether the property was a commercial property, an investment or owner-occupied, and whether it was ever lived in.
They also apply if any of the interests listed above have been held by you on your own or together with someone else – for example, where you held an interest in property with a former spouse or de facto partner.
Note that if either of you – whether individually or with someone else – have held any of the interests listed above, as a couple you are not eligible first home buyers.
For your home loan to be covered by the Scheme, you will need to make a statutory declaration that confirms you have not held any interests of this kind. This declaration is made under the First Home Buyer Declaration provided to you by your participating lender.
If you are unsure of whether you have held any of the interests listed above you should ask a professional adviser, as you will need to be sure that you are not giving a false declaration.
Citizenship test
The Scheme is only open to current Australian citizens.
The citizenship test for you being an ‘eligible first home buyer' for the Scheme is that you will need to be an Australian citizen at the time you enter into a home loan with your participating lender.
If you are applying under the Scheme as part of a couple, you will both need to be Australian citizens.
The Scheme is not open for permanent residents who are not Australian citizens.
Minimum age
The Scheme is only open to persons that are 18 years of age or over.
The minimum age test requires you to be 18 years of age or over at the time you enter into a home loan with your participating lender.
Deposit requirement
Home Loan Deposit Scheme
There is a minimum deposit requirement for the Scheme.
The Scheme is to assist singles and couples (together) who have at least five per cent (5%) of the value of an eligible property saved as a deposit. The 5% must be made up of genuine savings. If you have 20% or more saved, then your home loan will not be covered by the Scheme.
Your Participating Lender will be able to tell you if you satisfy this requirement. You should also confirm with your Participating Lender whether any cash grants under other Australian Government, State or Territory schemes or programs you may receive can be considered as part of
genuine savings by that Participating Lender.
Owner occupier requirement
The Scheme is provided to assist Australians to purchase their first home.
Investment properties are not supported by the Scheme.
They also apply if any of the interests listed above have been held by you on your own or together with someone else – for example, where you held an interest in property with a former spouse or de facto partner.
Note that if either of you – whether individually or with someone else – have held any of the interests listed above, as a couple you are not eligible first home buyers.
For your home loan to be covered by the Scheme, you will need to make a statutory declaration that confirms you have not held any interests of this kind. This declaration is made under the First Home Buyer Declaration provided to you by your participating lender.
If you are unsure of whether you have held any of the interests listed above you should ask a professional adviser, as you will need to be sure that you are not giving a false declaration.
Citizenship test
The Scheme is only open to current Australian citizens.
The citizenship test for you being an ‘eligible first home buyer' for the Scheme is that you will need to be an Australian citizen at the time you enter into a home loan with your participating lender.
If you are applying under the Scheme as part of a couple, you will both need to be Australian citizens.
The Scheme is not open for permanent residents who are not Australian citizens.
Minimum age
The Scheme is only open to persons that are 18 years of age or over.
The minimum age test requires you to be 18 years of age or over at the time you enter into a home loan with your participating lender.
Deposit requirement
Home Loan Deposit Scheme
There is a minimum deposit requirement for the Scheme.
The Scheme is to assist singles and couples (together) who have at least five per cent (5%) of the value of an eligible property saved as a deposit. The 5% must be made up of genuine savings. If you have 20% or more saved, then your home loan will not be covered by the Scheme.
Your Participating Lender will be able to tell you if you satisfy this requirement. You should also confirm with your Participating Lender whether any cash grants under other Australian Government, State or Territory schemes or programs you may receive can be considered as part of
genuine savings by that Participating Lender.
Owner occupier requirement
The Scheme is provided to assist Australians to purchase their first home.
Investment properties are not supported by the Scheme.
To meet the owner-occupier requirement, you will need to:
- move into the property within six months from the date of settlement or, if later, the date an occupancy certificate is issued, and
- continue to live in that property for so long as your home loan has a guarantee under the Scheme.
If you don't live in your property – including where you move out of the property at a later time – your home loan will cease to be guaranteed by the Scheme*. In these circumstances there may be terms and conditions of your home loan that require you to take certain actions – including that you may be need to pay fees and charges and/or take out insurance that would not have otherwise applied if your home loan were participating under the Scheme.
Home Loan Deposit Requirements
Your participating lender will be able to explain these terms and conditions to you.
Home Loan Deposit
* Members of the Australian Defence Force (ADF) are still required to be owner-occupiers under FHLDS however if they are unable to meet the owner-occupier requirement because of their duties, they can still be eligible if, at the time of entering into their loan agreement, they intend to live in the property.
