Latest news with #Keystart
West Australian
25-05-2025
- Business
- West Australian
Low-deposit home loans support first-time buyers across WA
With the rising cost of living, a strong property market and high deposit requirements, homeownership feels out of reach for many. But for thousands of Western Australians, Keystart has offered an alternative way in. Since 1989, Keystart has helped more than 124,000 Western Australians get their foot on the property ladder by lowering the barriers to homeownership. One of the biggest challenges for first homebuyers is saving for a deposit. Keystart's low-deposit home loan enables more people to get started on their homeownership journey sooner, as it takes significantly less time to save for a deposit compared to traditional lenders. 'All Keystart home loans have lower entry costs with a two per cent deposit requirement and no lenders mortgage insurance, saving our customers thousands,' Keystart CEO Mark Tomasz said. 'With our low deposit, it may not take you very long to save the required amount, helping you get into your own home sooner.' With Keystart, you can choose to build new, or buy an established or newly built home. Whether it is a house, a unit or an apartment, you can choose what best suits your needs. As a transitional lender, Keystart's goal is to help you get started, not to be your lender for life. Once you have built up enough equity in your property, it encourages you to move to another lender who may offer lower interest rates and other benefits. With loan products designed to respond to market conditions, Keystart continues to support people across metropolitan and regional WA. Not everyone is eligible for a Keystart loan – to ensure Keystart helps those who need it, there are certain criteria, including maximum property price and income limits. Keystart's current property price limit on its Low Deposit Home Loan is $730,000. The income limit for singles is currently $148,000, with a family income limit of $218,000 for this loan product. For a Shared Ownership Home Loan, the property price limit is $615,000 with the singles income limit being $123,000 and the family limit set at $189,000. Separate property price limits exist in the Kimberley and Pilbara to reflect their unique property market conditions and higher living costs across the region. The property price limits are reviewed periodically against annualised median house price data sourced from the Real Estate Institute of WA. Income limits reflect the income required to service the property price limits. 'We're passionate about creating more opportunities to help people enter the property market sooner,' Mr Tomasz said. 'We're here to support you through your journey. 'Whether you're using our guides and resources, engaging with our financial coaching service or tracking your loan progress with our app, we'll set you up for homeownership success.' Keystart provides an affordable pathway into homeownership for more Western Australians with low entry cost loans, including two per cent deposits and no lenders mortgage insurance.
West Australian
25-05-2025
- Business
- West Australian
Smart planning needed and government incentives available to help you step into the property market
While strong price growth over the past couple of years has made buying your first home more challenging, Real Estate Institute of Western Australia (REIWA) President Suzanne Brown said it was still achievable but might require some compromises. 'First homebuyers remain very active in the WA market, with data from the Australian Bureau of Statistics showing first-time homeowners made up 37.7 per cent of all owner-occupier loans in 2024,' she said. 'However, many have had to reassess their expectations, potentially shifting their focus from houses to more affordable options like units, villas or townhouses to get into the market. 'They're also needing to broaden their search to suburbs further from the Perth CBD, where prices tend to be lower. 'Currently, suburbs in Perth's south-east and south-west, along with Midland to the east, are the most affordable suburbs for houses. 'For people looking to be closer to the city, units in Wembley and Bayswater offer affordable opportunities.' Ms Brown encouraged first homebuyers to do their research thoroughly and to not be deterred by median house prices when considering where to buy. 'It is important to remember the median is the middle, and 50 per cent of sales will be below this price,' she said. 'There will still be affordable options in many suburbs – it may just take time and patience to find them in some areas. 'If your preferred suburb is out of your price range, look at neighbouring areas, which are sometimes called bridesmaid suburbs. 'They will be close to the same amenities you find desirable but are usually more affordable. 'I also remind first homebuyers their first house is often a stepping stone along the homeownership path not the final destination. 'Buy what you can afford, pay down the mortgage, and build some equity and upgrade later.' Ms Brown said saving a deposit was one of the greatest challenges facing first homebuyers, particularly in a climate of rising prices. She encouraged them to start saving as soon as possible and to make use of government schemes to help them build a deposit and get a loan. 'The Federal Government's first home super saver scheme lets first homebuyers save a deposit through their superannuation,' Ms Brown said. 'You can apply to withdraw a maximum of $15,000 of your voluntary superannuation contributions from any one financial year to buy your first home. 'Across all years, the maximum amount you can withdraw is $50,000 of personal contributions, plus earnings. 'First homebuyers should also know you don't need to have a 20 per cent deposit to get a loan. 'However, if you have less than 20 per cent, you will have to pay lenders mortgage insurance (LMI).' Ms Brown said there were further government schemes addressing this. 'Keystart is a State Government initiative allowing eligible buyers to get a loan with as little as a two per cent deposit and pay no LMI,' she said. 'The Federal Government's First Home Guarantee scheme allows eligible buyers to access a loan with a five per cent deposit. 'The government guarantees the remaining 15 per cent, negating the requirement for LMI. 'The Federal Government is also expected to launch its Help to Buy shared equity scheme later this year. 'It will allow buyers to benefit from a smaller mortgage and lower repayments, with the government taking an equity share of up to 40 per cent of the purchase price of new homes and 30 per cent of the purchase price of existing homes.' Ms Brown said there were several other grants and measures, which could help first homebuyers get their foot on the property ladder. 'If you buy or build a new home, you may be eligible for the $10,000 First Home Owner Grant,' she said. 'First homebuyers may also qualify for a $2000 grant from the Home Buyer Assistance Account to help with the incidental costs of buying a home such as settlement fees. 'Stamp duty is another major challenge facing homebuyers, as it is an additional cost on top of saving for a deposit.' According to Ms Brown, earlier this year, 63 per cent of 15,000 respondents to a Housing Issues Survey on agreed stamp duty was a significant barrier to homeownership in WA. 'There are stamp duty concessions to help address this,' she said. 'If first homebuyers buy a home valued at $500,000 or less, they will pay no stamp duty, saving up to $18,000. 'They will pay a concessional rate on purchases valued up to $700,000 in the Perth metropolitan area and Peel region or up to $750,000 outside of these areas. 'REIWA has been advocating for these thresholds to be lifted for some time, and we were pleased when the State Government announced an increase in March. 'However, rising prices mean these changes could quickly become redundant. 'We would like the State Government to go a step further and link the thresholds to REIWA's median sale prices – as Keystart has done for its products – so they can move with the market and remain accessible to as many first homebuyers as possible.' Ms Brown offered some additional tips for first homebuyers. 'Visit a mortgage broker to get an accurate idea of how much you can borrow,' she said. 'Get your finance pre-approved and speak to the selling agent about what you can do to strengthen your offer. 'Consider using a buyer's agent and, lastly, leave plenty of time for settlement.' is the home of Western Australian real estate, representing more than 1350 member agencies or 90 per cent of the sector. With more than 100 years of industry leadership and local knowledge, it is uniquely placed to provide in-depth market intelligence free of charge.
West Australian
25-05-2025
- Business
- West Australian
Time to deliver on housing promises
The spotlight will be on the first budget of the newly re-elected Cook Government when it is handed down in late June. For many Western Australians, housing continues to be one of the most pressing issues which will receive funding initiatives in this budget. The squeeze of rising living costs, declining affordability and ongoing housing supply shortages are still being felt in many households across the state. To that end, UDIA WA welcomed WA Labor's housing commitments during the election campaign, many of which closely aligned with our own advocacy. Now, as we approach the first budget of the new term, we are expecting these promises to be backed with the funding needed to implement them. While the budget is likely to focus on those already-announced initiatives, there is also an opportunity to look at further initiatives to addressing the state's housing challenges. With smart, targeted investment, the State Government can partner with the private sector to deliver even more homes faster. Among the key commitments we expect to see funded is the $20.6 million to expand stamp duty exemptions for off-the-plan and under-construction homes by $100,000, including townhouses, villas and apartments. The State Government also promised $110.7 million to lift the First Home Owner Rate of duty threshold to $500,000, with discounts available for homes priced up to $700,000 in Perth and $750,000 in regional areas. We also anticipate $75 million for a Build to Rent Kickstart Fund and a $210 million boost to the Keystart shared equity scheme for up to 1000 new apartments and townhomes purchased off-the-plan or under construction, which will help deliver up to 1000 new homes for Western Australians. The $400 million Housing Enabling Infrastructure Fund is another significant initiative we fully support. Infrastructure investment is essential to unlocking housing supply and bringing new developments to life. But we can't stop there. UDIA WA is urging further funding to support the delivery of new homes and to help keep housing within reach for more people. This includes ensuring service agencies have the capital budgets they need to avoid delays to residential land development. We'd also like to see further funding allocated to build on the initial $400 million Housing Enabling Infrastructure Fund to catalyse residential development in key growth areas, as well as an extension and expansion of the existing Infrastructure Development Fund to boost the viability of apartment projects. UDIA WA has also recommended reforms to improve government efficiency and coordination in planning and approvals. Overall, this budget is an opportunity for the Cook Government to follow through and make a real difference to the future of housing in WA.
