Everyone’s asking it so we’re breaking it down #SmartStyle
Keystart is going to get you into your new home pronto but it’s not a bank. It’s also not a government agency (more on that later). Keystart is a mortgage lender that offers an affordable pathway into the housing market. That’s the key term here, pathway. If you qualify for a Keystart home loan, you’ll get access to the most affordable home loan in WA *praise be* and that’s not solely based on repayment comparisons. Seriously though, where’s the Keystart initiative for a beach-side coffee and babychino combo?! $2.50 for a scoop of milk foam and a marshmallow is so un-Aussie!
Okay, here’s a breakdown of what you get with Keystart. If you’ve been looking at other mortgage lenders, you won’t need an inflated dose of number smarts to know that these three dot points could be your ticket into new-home-heaven:
- Minimum deposit from: 2%
- Lenders Mortgage Insurance: $0
- Monthly account keeping fees: $0
Going back to the whole “pathway” thing; Keystart refer to themselves as a transitional lender. This is what we call a #SmartStart and basically means that you’ll be encouraged to refinance your home loan whenever you’re ready. Their main purpose is to get lower- and middle-income West Aussies into their own home – because who can afford a deposit these days!? Then, once you’ve bought your new home, you’ll start to generate equity. With this equity, you may qualify for a more traditional home loan. But why switch? Well, with some equity up your sleeve and a history of consistent mortgage repayments, you’ve got some negotiating power (our superpower goal, just below teleporting over peak-hour traffic ofcourse). You may be able to get yourself a lower interest rate and even use your budget smarts to package together some of your other finances (i.e. credit cards)! The best reason to refinance is to help other Aussies just like you, pay it forward styles. Because when you’re ready to move on from Keystart, they can help other people get their #SmartStart. Having said all of this, some Keystarters never move and others are ready to transition in just five years.
The #SmartStart first home process
The process towards a Keystart loan is actually pretty simple and our team at Smart know it like we know our neighbour’s wifi password:
First things first, we find out if you’re eligible. To meet the basic criteria you will need to be 18+, an Australian citizen or permanent resident, be looking to buy in WA, and plan to live in the home. You also have to be a first home buyer/builder. From there, we just have a few more simple Qs that you can even answer online.
Once you know that you’re eligible, we will give you a guide as to how much you can borrow with Keystart. This will help you to refine your new home search. Is it a Space Smarts (link) home with a WIR as big as your rental kitchen, or a 3 x 2 home you iDesigned (link) yourself? Let your budget be your guide!
3) Approval day (aka celebratory round on you)
This is when you find the house and land package that matches your budget and the offer is approved *crack out the left-over packet of NYE sparklers*. We complete the documentation with you and your smart start can begin.
Sure, it’s the boring part. We agree. It’s often a case of death-by-paperwork, but your Smart agent will be with you the whole way through annnnnnd once it’s all done, the building can commence!
5) Slab down
Once it’s all settled, it’s time to build. The best news? When you build with us, you’re guaranteed a 28 week build time from the day the slab goes down. Yep, that’s how we roll. It’s probs why we have so many happy home owners leaving us shiny star reviews. (link) Just sayin’.
Recap on your Keystart #SmartStart: It’s WAs low deposit home loan without the need for lender’s mortgage insurance. When you’re ready, you can refinance and negotiate some pretty sweet deals, freeing up Keystart to help more Aussies get into their own home.
Know Keystart a little deeper
There’s a lot of confusion out there as to what Keystart actually is and how it fits into the whole mortgage game. So, here it is: Keystart is a not-for-profit initiative of the WA government and any profit made goes straight back into the Department of Communities (Housing Authority). Sure, Keystart is the brainchild of the government, but it’s not a government agency and even has an independent board. Why should you care about Keystart’s board? We were unsure of our care factor too but it means that they’re regulated by the Australian Securities and Investments Commission. It’s an extra layer of protection for you as you dive into the biggest investment of your life, so kinda important.
For the research junkies
If you love a good research, there’s more you can learn about Keystart on their website: keystart.com.au. They have more than 130 local staff so you will be sure to get your questions answered!
We also have a dedicated page for all things Keystart. And our Keystart smarties are ready to guide you into first home ownership. Contact us to get all the info, from Keystart eligibility all the way through to building your smart home!