- Home loan deposit options. Getting the deposit together for a new home can be challenging. An ANZ Home Loan Coach can help. We’ll talk you through the options and could help you reach your goal faster than you think. You could get a $3,000 cash contribution when you buy your first home with an ANZ home loan.
- Under Help to Buy, introduced in 2013, if you have a deposit of at least 5% and fulfil the criteria you could be able to get help buying your own home - either through an equity loan or the Mortgage Guarantee Scheme. The equity loan provides an interest-free loan of 20% of a new-build home.
Our home loans have lower entry costs, with our low deposit requirement and no lender's mortgage insurance, so you can get into your own home sooner. If you're ready to apply, follow the steps to how much you can borrow and see if you qualify.
FAQs about this loan
- Q What the impact is coronavirus (COVID-19) having at Keystart? A
- Q Can I get a loan if my sole source of income is Centrelink payments? A
You may qualify for a loan based solely on Centrelink income however the loan amount will be based on your income level and may not be enough to buy a property.
- Q Do you do interest only loans? A
No. As we are focused on helping more people start their home ownership journey, we do not offer interest only loans or loans for an investment property. All of our loans are principal and interest home loans.
- Q Can I buy an investment property? A
No. As we are focused on helping more people start their home ownership journey, we do not offer interest only loans or loans for an investment property. All of our loans are principal and interest home loans and are for owner-occupiers. You are required to occupy the property as your principal place of residence.
- Q Other than the deposit, what other costs are there? A
Some of the other upfront costs you may incur when buying a home include application fees, legal/conveyancing fees, transfer fees, government stamp duty, inspection fees (building/termite), settlement agent fees, building insurance and water/shire rates.
You may also need to consider your moving costs if you need to hire a truck or removalists. Maybe friends and family can help?
- Q Can I buy an established house? A
Absolutely. Once you have conditional approval you can start house-hunting for your home. There are some advantages in buying an established house. Read more in our Build or buy guide.
- Q Can I build a new home? A
Absolutely. Once you have pre-approval you will know how much you will be able to borrow, and therefore how much you can spend. You might like to to weigh up your options of building vs buying a new home - read our guide for some helpful tips.
- Q Can I buy anywhere? A
Yes, anywhere within Western Australia. Once you have conditional approval you will be able to start looking for your new home. You can use the finance to buy an established home or to build. Remember to take into consideration the distance to your work and other facilities you want nearby.
- Q Am I eligible? A
Keystart has some set eligibility criteria. You can find out more about your loan requirements or you can find out if you would be eligible by completing pre-qualification. This takes about five minutes.
- Q Do I have to be employed to get a loan? A
Yes, you do need to have a stable income or regular employment for at least six months.
Keystart accepts some Centrelink benefits as income, but your total income affects the amount you will be able to borrow.
- Q Can I only use Keystart if I go with a builder? A
No. Once you have pre-approval you are able to go home-hunting for whatever you like. An apartment, an existing home in an established area or a new house and land package. The choice is yours.
We support you all the way through the loan application process too with a dedicated home loan specialist working with you from your first enquiry through to settlement.
- Q Do I need to show savings history? A
No. We do not require savings history but will request statements for any bank accounts you have as well as statements for any existing loans, credit/store cards and rental history. This is so we can establish your ability to manage your finances.
- Q What type of home can I buy? A
With Keystart's Low Deposit Home Loan you either can purchase an established property, build a new home through a registered builder or buy a newly constructed property. You can build an apartment, a townhouse, a stand-alone home or a unit - the choice is yours!
- Q I already own a home but want to apply for a Keystart loan as well. Is that possible? A
Unfortunately you cannot be considered for any Keystart products if you already own a property. Keystart assists people to get started on their home ownership journey. We require you to owner occupy the home for the life of the Keystart loan.
If you are in a situation where you will not own a home at the time of settlement, for example if you are in the process of selling your existing home, you may still be eligible. Get in touch to find out more.
- Q Why have the income limits been set at specific caps for each region? A
Keystart has undertaken a great deal of research to determine the income levels that assist the greatest number of Western Australians into a reasonable standard of housing. These limits are continually reviewed and will be amended if necessary.
- Q I have owned a property before. Can I apply? A
Yes you can. Subsequent home buyers are eligible to apply as long as you don't currently own or part own any other home or land.
- Q Can I rent out my property? A
No. We aim to help more people on the journey to home ownership. In line with this vision, we do not offer loans for investment properties. Under the terms and conditions of the Offer to Borrow and the Keystart mortgage, you are required to occupy the property as your principal place of residence. This means you are not able to rent the property out.
Home Loan Deposit Australia
5 Home Loan Deposit Nz
It gives the lender an idea of what you can afford to repay regularly
Regular savings deposited into an account over a period of several months, regular rental payments and investments all work together to give lenders an indication of your ability to maintain your home loan repayments.
Lenders will look at these and your income sources (salary, investments, dividends) to assess how much money they’re willing to lend to you. Use our borrowing power calculator to get a rough estimate of how much you may be able to borrow.
It impacts the interest rate lenders may offer
The deposit you have available when you come to apply for your home loan can have an impact on the interest rate of the loan.
The bigger your deposit, the more negotiating power and choice of lenders you may have. If you have a bigger deposit, you may even be able to secure a discounted interest rate from a lender.
It affects how 'risky' you are as a customer, and whether you need to pay Lenders Mortgage Insurance (LMI)
Lenders use a simple Loan to Value Ratio (LVR) calculation to assess how risky they consider you (as a borrower) to be. The loan to value ratio looks at the amount you wish to borrow in relation to the value of the property you're looking to purchase.
The higher this ratio, the more risk for the lender. Generally, if you have an LVR of over 80% (as in you wish to borrow more than 80% of the property's value) the lender will require you to pay an LMI premium. This insures the lender against any losses that may occur in the event you default on your loan.
There are alternatives to paying LMI, such as have a family member act as a security guarantor for your loan.
You pay less interest over the life of your loan
The less money you borrow, the less you have to pay off in the future. This means over the course of the home loan, you’ll also be paying less interest. You stand to save a lot by having a sizeable home loan deposit.