How to Buy Your First Home with Just a 1% Deposit Using Keystart
Buying your first home can feel overwhelming, especially when saving for a deposit. But with a Keystart home loan, you could get into your first property with as little as 1% deposit, and without paying Lenders Mortgage Insurance (LMI). Here’s how it works and whether you qualify.
What is a Keystart Home Loan?
Keystart is a government-backed home loan program in Western Australia designed to help first home buyers get into the property market sooner. Unlike traditional loans, Keystart allows borrowers to:
Secure a home with a deposit as low as 1%
Avoid paying LMI, which can save thousands of dollars
Access competitive interest rates tailored for first home buyers
Who Can Apply?
To be eligible for a Keystart loan, you must meet a few key requirements:
Australian Citizen or Permanent Resident
You need to be a permanent resident of WA and either an Australian citizen or a permanent resident.First Home Buyer
The loan is only available to first home owners, so you cannot already own property in Australia.Income Caps
Keystart sets maximum income limits for applicants to ensure the program helps those who need it most. Income caps vary depending on whether you’re applying individually or as a couple/family.Property Price Caps
There are limits on the maximum value of the home you’re buying. This varies by suburb and property type, ensuring the program targets affordable housing.
How It Works
With a Keystart loan, you can purchase your home with just 1% deposit. For example:
Purchase price: $400,000
Deposit: 1% = $4,000
LMI: $0
This makes entering the housing market much more achievable for first home buyers who are still saving.
Pros of a Keystart Loan
Minimal deposit required
No LMI fees
Government-backed security
Flexible repayment options
Things to Consider
Property and income caps limit eligibility
Only available for first home buyers
Borrowers still need to cover other costs like stamp duty, legal fees, and moving expenses
Ready to Get Started?
Keystart is a fantastic option if you’re a first home buyer looking to get into the market with a small deposit. If you’re unsure whether you meet the requirements or want help working out how much you can borrow, reach out today — we can guide you through the process and make sure you’re pre-approved before you start house hunting.
