For many Perth residents, the dream of owning a home is now a reality all thanks to Keystart Home Loans. In the last couple of years, the qualifying income limits have increased allowing even more people to start their journey towards home ownership. If you’re one of those still thinking about Keystart, the good news is those increased limits will stay in place until 30 June, 2022.
So, if Keystart Home Loans are so good, why don’t more people apply for them? Is there a catch or something in the fine print that people are missing?
Let’s explore the pros and cons of Keystart Home Loans, find out whether you qualify and if Keystart is the right loan for you.
Do you qualify for a Keystart Home Loan?
There are several eligibility requirements when applying for Keystart Home Loans. These include:
- You must be 18 years or older.
- You must be an Australian citizen or permanent resident living in Western Australia.
- The home loan must be for owner/occupier purposes, not for investment purposes.
- You must have an income that fits within the income bracket that applies to your situation – keep reading, we’ll discuss more about that later.
- You cannot own another home or land at the time of your Keystart loan settlement.
- You plan to live in your home throughout the duration of your Keystart loan.
- You must work and live within a certain distance of your new home, unless you are a FIFO worker.
As mentioned, there is an income limit you’ll have to meet to qualify. These amounts change depending on your circumstances and your location. Here are the income limits when applying for a low deposit home loan in the metropolitan area:
- Single person = maximum annual income of $105,000
- Two people = maximum annual income of $130,000
- Family = maximum annual income of $155,000
If you think that you meet some, but not all the requirements, talk to Blueprint Homes’ inhouse finance team at InReach Finance for a qualified opinion.
Pros and Cons of Keystart Home Loans
Getting out of the rent trap and into your own home is a path that many people want to take but for one reason or another it doesn’t happen. Whether it’s due to a bad credit rating or lack of upfront funds, there are some financial roadblocks that people can’t get past. Keystart helps you bypass those roadblocks.
Pros of Keystart Home Loans
- You only need a 2% deposit whereas some banks require from 5%-20% deposit
- Your deposit may not have to include genuine savings. That means you’re not required to provide evidence of genuine savings over 3 months.
- You can use the First Home Owner Grant (FHOG) towards your deposit when building a new home
- No lender’s mortgage insurance (LMI) which saves you thousands of dollars
- A simple application process and easy to understand home loan. Keystart is perfectly suited for First Home Buyers.
Cons of Keystart Home Loans
- Keystart is only available to Western Australian residents
- You cannot apply for a Keystart Home Loan if you already own a property
- You must fit within the income brackets – if you fall outside the set amounts you won’t automatically qualify
- You cannot rent out your property, it must be a home built for the owner/occupier
- Keystart only offer a standard variable home loan product
Is a Keystart Home Loan the right loan for you?
Keystart Home Loans aren’t designed for everyone. However, for thousands of Western Australians Keystart has been the answer to owning a home and building a more secure financial future. If you’re having trouble securing finance through the big banks, talk to Blueprint Homes’ finance team, InReach Finance, about a Keystart Home Loan.
With InReach Finance they’ll handle all the paperwork for you and they can even show you how to get reduced payments during the construction of your new home.
If you’re ready to make the step up to home ownership, we can help you achieve your goal.