Low Deposit Finance Made Easy!
Building a new home can be a daunting process, especially finding a finance option that suits your individual circumstances, amongst the huge number of products in the marketplace. It can certainly feel like navigating your way through a minefield at times!
Thankfully, the team at DreamStart Homes, coupled with our in-house brokers at Peak Finance Solutions, can offer a number of different loan products, each designed to make getting into a new home easier.
One of our most popular lenders is Keystart, a lender who specialises in low deposit home loans for first and second homebuyers.
Keystart is a Western Australian Government Initiative that provides home loans to those that may not meet the deposit requirements of mainstream lenders.
Keystart offers low deposit home loans without the added expense of lender’s mortgage insurance or pesky account keeping fees, potentially saving you thousands of dollars over the term of your loan!
Keystart home loans also offer the following features:
- 2% total deposit required with no requirement for genuine savings
- Reduced repayments during Construction*
- Loans to those who have had defaults or been bankrupt
In a time where many lenders are tightening their lending criteria, Keystart is expanding theirs. In 2019, the income limits that determine Keystart eligibility are increasing, so if you haven’t met the requirements before (even as recently as a few weeks ago), it might be worth giving it another go!
The new income limits for Keystart loans, for people living in the Perth metro area, as of 1st July 2019 are:
- Singles earning up to $105,000, up from $90,000
- Couples earning up to $130,000, up from $115,000
- Families earning up to $155,000, up from $135,000
There are a few boxes you have to tick to qualify for a Keystart loan, such as being an owner occupier and meeting the above income criteria, however one of our friendly Home & Land Specialists would be more than happy to assist you with this process, either in person or over the phone. This enables you to spend less time worrying about finance and more time designing your dream home, which is where the fun really begins!
Finance service provided through Peak Finance Solutions as an Authorised Credit Representative of Vow Financial Pty Ltd. Australian Credit Licence 390261
Once you have made the decision to build, the next step is to decide on a lender that will meet all your home loan needs.
There are so many options available for financing your new home, meaning it is easy to become overwhelmed. Your individual circumstances are different to other people, so not all loans will be suitable.
Entry costs are one of the biggest obstacles for people wanting to take the plunge to build their own home, everything adds up.
Keystart has addressed this issue by creating low deposit loans, that also have no mortgage lenders insurance.
To date, Keystart has helped more than 100,000 WA households to realise their home ownership dream.
Keystart is unique in the home loan market. An initiative of the Western Australian Government, it was created to provide an affordable pathway into home ownership, for those who may otherwise not be able to even think about owning their own property.
With a minimum deposit from 2%, compared to 5% with other lenders, as well as no monthly account keeping fees or mortgage lenders insurance, keystart is definitely the smart option.
All of these things mean that you will potentially be saving thousands of dollars over the term of your loan.
Keystart Home Loans also offer reduced payments during construction, and loans to those who have had defaults or previously been bankrupt.
There are a few boxes you have to tick to be eligible for a Keystart Loan, you must meet the following criteria:
• You must be 18 years or older and be an Australian Citizen Or Permanent Resident.
• Be living in Western Australia or are wanting to build there.
• Have an income that is within the Keystart Loans maximum limits.
• Must not own another home or land at the time of settlement of your loan.
• Plan to live in the home for the duration of your loan with Keystart.
• Need to have enough funds available to cover all costs associated with the purchase, including your deposit, fees and any moving costs.
One of the biggest advantages of getting a home loan through Keystart is that you only need a small deposit. In most cases you will only need a few thousand dollars to be able to start the process of building your new home, which certainly takes the pressure off your bank balance.
Although it may sound too good to be true, 30 years of having a great reputation, would suggest otherwise. The Keystart scheme has gone from strength to strength over the past 3 decades and has a default rate 30 percent below the industry standard.
Deciding who you would like to build your home is one of the most important decisions you will have to make in your life, as your home will likely be your biggest asset.
Just as important is which home loan lender to go with, and a Keystart loan is clearly the best option if you are building for the first time. The low deposit requirements make getting started, sooner rather than later a lot easier.
Keystart have new home specialists that can guide you through the application process, including helping you to establish your borrowing capacity.
Pairing a DreamStart house and land package with a low deposit loan from Keystart will ensure you get the best value possible.
If you would like to know more about DreamStart Homes, or how Keystart loans work, chat to one of our friendly team today.
Our team is ready to answer any questions you may have. We are here to take away all the uncertainty and stress, so you can concentrate on designing your gorgeous new place.
Your Dream Home Starts Here.