KeyStart Loan Changes Makes Owning a Home Easier

Recent changes in the Keystart Home Loan lending scheme open up the loans to many more Western Australians. The changes make buying a house more affordable and accessible. Keystart Loans are a lending option supported by the WA meant to help moderate income earners buy houses. First Home Owners Centre explains the changes made and the benefits of getting a Keystart Home Loan


September 12, 2013 – Perth, WA – Following the decision in early August by the Reserve Bank of Australia to reduce interest rates, Keystart has also recently decided to decrease standard variable interest rates by 0.26%.

This interest rate cut make loans more affordable to existing and new Keystart customers. These loans can be used to either buy an established house or construct a new one on vacant land.

Keystart has seen a huge increase in number of loans approved this year based on changes made to its lending criteria. Based on analysis of 2011 Census data, Keystart made significant changes to its lending criteria to make its loans available to more Australians.

Since the new lending criteria went into effect in October 2012, loan approvals have shot up 387.5% as thousands more Western Australians have bought their home using Keystart.

Keystart is available to all qualified home buyers who fit the moderate income profile for its loans, but the increase in approvals was mostly attributed to many more first home buyers qualifying. These prospective new home buyers were previously cut off mainly by the income cap which has been lifted.

Along with income limits, acceptable debt levels, and property price caps were also increased to allow more Western Australians to qualify for Keystart loans.

The decision to relax lending criteria was based on analysis of 2011 Census data, which revealed that there were 89,000 West Australians with annual income from $70,000 to $150,000 who were either renting or living with their parents and didn’t own a home.

“The data showed us that we needed to adapt to a changing environment and we did so to catch the group of West Australians still renting and unable to secure finance elsewhere,” said Lisa DiCesare, Sales Executive.

KeyStart Home Loans

Established in 1989, Keystart is a government-supported loan program aimed at helping West Australians who have trouble obtaining a loan to buy a home. Compared to other loans, Keystart offers very low deposit requirements and does not require mortgage insurance.

For buyers in metro areas, only 2% of the purchase price is required for a deposit. With most loans, Lenders Mortgage Insurance (LMI) is required when deposit does not reach 20% of the purchase price. For many Australians, the extra expense of LMI is a significant barrier to purchasing a home.

LMI is effectively eliminated with a Keystart loan, making purchasing a new home much more affordable for qualified buyers.

Based on financial need, Keystart also offers a shared ownership option where the Department of Housing co-owns the property, aiding the first time home buyer in breaking the rent cycle. In addition, with Keystart there are no ongoing monthly account keeping fees.

For those West Australians looking to buy their first home and break the rent cycle, it pays to take a look at all the options. First Home Owners Centre offers assistance and advice with the financial side of buying a home.

About First Home Owners Centre

First Home Owners Centre is the First Home Owners division of HIA award winner Aveling Homes, one of Western Australia’s most quality focused building companies. What this means for you is that above all else, quality and affordability is what you will experience when you choose First Home Owners Centre.

Visit the First Home Owners Centre website at for more details about our services and available financing options for first time home buyers.

First Home Owners Centre Contact Information

24/7 Sales Enquiry line: (08) 6144 1088