Quick Summary
Founded
1989
Owned by:
the Housing Authority
Funded by:
Western Australian Treasury Corporation
LMI Provider:
-
Lender type:
Specialist Lender
Keystart was established in 1989 as an initiative by the Western Australian Government. Although a private organisation, Keystart operates under an independent board and has the Housing Authority as its sole shareholder.
The organisation’s mission is to provide transitional finance solutions that facilitate affordable home ownership in a sustainable manner. Keystart takes its responsible lending obligations seriously, carefully assessing each applicant’s financial situation to ensure they can comfortably meet their home loan repayments without falling into financial hardship.
Since its inception, Keystart has helped over 118,000 Western Australians on their journey to home ownership. It supports the local community through partnerships with various organisations, including the Perth Wildcats, Relationships Australia WA, and numerous WA charities. Keystart also collaborates with industry bodies such as the Housing Industry Association, Master Builder Association, and Real Estate Institute of WA to strengthen its industry connections.
How Do Keystart Home Loans Compare?
Pros
- Only a 2% deposit is needed, compared with 5% with other lenders.
- Over 130 local staff members are responsible for customer support.
- Surplus funds support social housing initiatives.
- Clear steps from pre-qualification to loan management.
- Save money on insurance costs.
- Options for low deposit, shared ownership, and Aboriginal home loans.
- Encourages refinancing to other lenders once equity is built.
- Offers tools and resources to help manage finances.
Cons
- Designed as a temporary solution, requiring future refinancing.
- Offers only home loans, unlike banks that provide diverse financial products.
- While an initiative of the WA Government, it's governed independently and may lack some perceived stability.
- Interest rates are variable, which may lead to fluctuating repayments.
Keystart Home Loans is not part of our lending panel. This information is provided for your reference only.
What Home Loan Types Do They Have?
Low-Deposit Home Loan: This loan enables home ownership with a deposit as low as 2%. Borrowers can choose between purchasing an established home or building a new one, potentially using the First Home Owner Grant (FHOG) towards the deposit.
Shared Ownership Home Loan: This loan lowers entry barriers by allowing shared ownership with the Housing Authority, which can fund up to 30% of the purchase.
Aboriginal Home Loan: Offers full or shared ownership options tailored for Aboriginal and Torres Strait Islander peoples.
Access Home Loan: Designed for individuals with disabilities or those caring for someone with a disability, facilitating home ownership or necessary modifications.
Urban Connect Home Loan: Targets buyers of medium and high-density apartments in urban locations near transport hubs.
What Makes Them Different?
Keystart stands out in the lending market due to its unique approach to making home ownership more accessible. One of the primary differentiators is the low deposit requirement, with borrowers needing only a 2% deposit, compared with the typical 5-20% other lenders require. This lowers the barrier to entry, allowing more people to enter the housing market sooner.
Additionally, Keystart does not require Lenders Mortgage Insurance (LMI), which other lenders typically mandate for borrowers with less than a 20% deposit. This can save borrowers thousands of dollars, making home ownership more affordable. Keystart also does not charge monthly account-keeping fees, further reducing the financial burden on borrowers.
Keystart operates as a transitional lender, helping borrowers get started on home ownership. Unlike traditional lenders, which aim to retain customers long-term, Keystart encourages customers to refinance with another lender once they have built sufficient equity and improved their financial situation. This model supports borrowers in achieving more favourable loan terms over time.
Furthermore, Keystart’s profits are reinvested into social housing initiatives through the Department of Communities (Housing Authority). Any surplus funds generated support community housing projects, aligning with Keystart’s mission to promote affordable home ownership while contributing to broader social goals.
How Does The Keystart Home Loan Application Process Work?
- Pre-Qualification: Start with a quick online assessment to determine eligibility in five minutes.
- Conditional Approval: Keystart assesses your financial situation to establish your borrowing capacity and provides a list of conditions to meet.
- Formal Loan Approval: Meet the remaining conditions, submit any additional documentation, and review and sign the formal loan documents.
- Settlement: Keystart’s settlement agent co-ordinates with your agent to complete the property transfer. You become the legal owner and can move into your new home.
- Post-Settlement Support: Keystart provides ongoing tools and resources to help manage your loan.
Applying With Keystart
- Call us on 1300 889 743 or complete our online enquiry form and we'll let you know if Keystart or another specialist lender is suitable for you.