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Now is the time to get into your own TERRACE home thanks to Keystart!

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Family walking into a TERRACE home.

Have you been dreaming of homeownership? Make those dreams a reality with Keystart’s Low Deposit Home Loan! In light of the Federal Election, the State Government has recently announced they will be relaxing the borrowing criteria through Keystart, so more Western Australians can get onto the property ladder. Read on to find out how these changes might affect you and your family.

What is the Keystart Low Deposit Home Loan?

Keystart is a government-owned agency that lends to income earners who might have difficulty getting a home loan approved by a big bank. Under the scheme, it provides low deposit home loan products such as the Keystart Low Deposit Home Loan to get you into a home of your own sooner.

Through Keystart, almost 13,000 loans have been written over the past five years and is only set to increase with the government’s $420 million Budget boost last December to increase Keystart’s lending capacity.

As part of the Low Deposit Home Loan, borrowers only need a 2% deposit to qualify and are not charged lenders’ mortgage insurance (LMI), which can save them thousands of dollars. Offering a standard variable interest rate based on the rate charged by the four major banks (currently 5.34%), it’s available to:

  • Both first home buyers and subsequent home buyers
  • Owner-occupiers to buy an established home or build a new house

What updates have been made?

What sets Keystart apart is how it provides low deposit home loans to Western Australians who can’t meet the requirements of mainstream lenders: The income limits are leaving behind a growing number of people who are earning too much to qualify, but still struggling to get bank finance.

That’s where the changes come in. In support of the State Government’s policy to assist more Western Australians into homeownership, Keystart has announced its income thresholds for borrowing will be lifted by $15,000 for singles & couples and $20,000 for families.

Now, the new income limits when applying for the Keystart Low Deposit Home Loan are:

  • $105,000 for singles
  • $130,000 for couples
  • $155,000 for families

This applies to homes up to the value of $480,000 in the Perth Metro Area and will come into effect as of 1 July 2019. However, it’s only a temporary offer and will finish on 31 December 2019. This means, Perth home buyers only have six months to enter into sales to purchase an established property or build a new home. The income limits will then go back to the current levels from 1 January 2020.

*Please note: “The increased income limits will be available to all applicants who enter into sales contracts to purchase an established property or build a new home from 1 July 2019 until 31 December 2019. Keystart will accept applications using the higher income limits from 1 May 2019 to give consumers confidence they can begin their search for a home knowing what they may be eligible to borrow. The sales contract must settle after 1 July 2019. The income limits will then revert to the current levels from 1 January 2020.”  – Keystart, May 1, 2019

*Keystart Terms and Conditions, fees and charges and normal lending criteria apply. Rates and limits stated are subject to change without notice.

How will this benefit me?

By expanding their eligibility criteria, the State Government estimates around 11,000 additional households will qualify to apply for Keystart finance. But a common misconception is this change will only benefit first home buyers. This is simply not the case.

The Keystart Low Deposit Home Loan is for both first home buyers and subsequent home buyers, which means if you’re buying your second home you can still reap the rewards of the new income thresholds. The only real difference is that you won’t be able to apply for and use the $10,000 First Home Owners Grants towards your deposit.

The TERRACE difference

There’s never been a better time to build. With these favourable conditions, building your first or second home in Perth is easy with TERRACE. You can get into a TERRACE house and land package from just $299,000*, choosing from a range of two, three and four bedroom two storey homes in over 20 locations in the Perth Metropolitan Area.

A new way of living that’s timeless, expressive and aspirational, TERRACE makes the most of the space with architecturally designed elevations and floorplans. Some of the little things that makes your TERRACE home stand out from the crowd are:

  • Double brick construction
  • Stylish European stainless steel appliances
  • Built in robes to all bedrooms
  • 31c ceiling height to the ground floor
  • 2000mm high tiling to shower recess
  • Ceramic tiling to all wet areas
  • Painting to ceilings, doors and door frames

Discover more today at our display homes and experience the TERRACE concept for yourself. Contact us today.

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