Home Loans · Keystart
Keystart Home Loans in Perth.
Keystart is the Western Australian government-backed home lender. It lets first home buyers in Perth get into a home with as little as a 2% deposit and no Lenders Mortgage Insurance, with income caps applying. Central Lending Solutions is Keystart accredited, compares Keystart against 30 plus mainstream lenders, and only recommends it when it actually wins on the maths.
- 2% deposit accepted
- $0 LMI
- Est. 1989
- WA government-backed
What it is
What is a Keystart home loan?
Keystart is the Western Australian government-backed home lender. Established in 1989 by the Department of Housing, it was created to help low and middle income West Australians who could not access mainstream bank lending get into a first home. Keystart is not a bank, has no branches, and lends only inside WA.
The product set is deliberately narrow. There is a standard low-deposit home loan, a shared equity option, and a Disability Home Loan for people receiving the Disability Support Pension. None of these are designed as long-term products. Keystart is a bridge into ownership for borrowers who do not have a 20% deposit and would otherwise pay tens of thousands in Lenders Mortgage Insurance to a mainstream lender.
Who is Keystart designed for?
Keystart suits first home buyers in Perth who have a stable income but a small deposit. The typical client is on a $70,000 to $130,000 household income, has saved 2% to 5% of a $450,000 to $620,000 metro property, and would be declined by a major bank or charged $15,000 plus in LMI. Keystart removes both barriers in exchange for a slightly higher base rate.
Who is it not designed for?
Keystart is not the right loan for borrowers earning above the income caps, buying above the WA property price caps, or planning to use the home as an investment. It is also not the right loan if you already have a 20% deposit, because mainstream lenders will price your loan more sharply. Compare the maths first, every time.
Eligibility
Keystart income caps and property caps (2026).
Keystart eligibility is reviewed twice a year by the WA Department of Communities. The current settings, in plain numbers:
| Household | Income cap (per year) | Notes |
|---|---|---|
| Single applicant | $105,000 | Gross before tax |
| Couple, no dependents | $130,000 | Combined gross |
| Family with dependents | $155,000 | Combined gross, regardless of number of children |
| Aboriginal Home Loan | $130,000 | Eligible Aboriginal and Torres Strait Islander applicants |
Property price caps apply by region. The current Perth metro cap is around $580,000 for established homes and around $620,000 for new builds, and outside metro the caps are lower. The exact figure shifts with each Keystart policy review, so we confirm it against the current sheet on every application.
Applicants must also be Australian citizens or permanent residents, be over 18, intend to live in the home as their principal place of residence, and not own any other property at settlement.
The trade-off
How Keystart differs from a mainstream bank loan.
The honest comparison, so you can see exactly what you are trading for access.
| Mainstream bank | Keystart | |
|---|---|---|
| Minimum deposit | 5% (with LMI), 20% (no LMI) | 2%, no LMI ever |
| LMI cost (95% LVR on $550K) | ~$18,000 added to loan | $0 |
| Variable rate (2026 indicative) | [TBC sharp]% | [TBC Keystart]% |
| Income caps | None | $105K single / $130K couple / $155K family |
| Property price caps | None | ~$580K established / $620K new (metro) |
| Available outside WA | Yes | No |
| Long-term product | Yes | No, expects refi out |
The trade is simple. You give up access to the sharpest variable rates in exchange for entry without LMI on a small deposit. For the right borrower at the right time, that trade is worth tens of thousands. For the wrong borrower, it costs them.
The exit
The Keystart refinance exit strategy.
Keystart is designed as a stepping stone. The expectation is that borrowers refinance to a mainstream lender once their loan-to-value ratio drops below 80%, or once their income rises above Keystart's caps. At that point a mainstream variable rate becomes available without LMI, and the rate drop usually saves several thousand dollars a year in interest.
When does the refi window open?
Usually 18 to 36 months after settlement, depending on how fast the Perth market moves and how aggressively you have paid down principal. Two things grow your usable equity: rising property values, and your repayments chewing into the loan balance. A property bought at $550,000 with a 95% Keystart loan often hits the 80% LVR threshold inside two years in a normal Perth market.
How we manage the exit
We schedule an annual review for every Keystart client. We check current valuation against the loan balance, run live pricing across the panel, and tell you when the refi maths makes sense, including the switching costs. We do not refinance for the sake of it. Most reviews end with "stay put for now". When the window opens, we move fast.
Run the numbers
How much could you borrow with Keystart?
Get an indicative Keystart maximum in seconds, then book a free chat to map it against the mainstream alternatives and confirm which actually wins.
Keystart-specific
Keystart borrowing calculator
Quick estimate of your Keystart maximum loan and 2% deposit target.
→All lenders
Borrowing power calculator
Indicative max across the mainstream panel, so you can compare Keystart to a major bank.
→WA-specific
Stamp duty calculator WA
First home buyers under WA price thresholds may qualify for full exemption.
→Common questions
Keystart Perth FAQs.
What is Keystart?
Keystart is Western Australia's government-backed home lender, established in 1989 by the WA Department of Housing. It exists to help low to mid-income West Australians buy their first home with as little as a 2% deposit and no Lenders Mortgage Insurance. Keystart is not a bank, has no branches, and lends only inside WA.
Who is eligible for a Keystart home loan in Perth?
Eligibility depends on income caps, property price caps and residency. As of 2026, single applicants must earn under $105,000, couples under $130,000 and families under $155,000. The property must be in Western Australia and under the metro Perth price cap. Applicants must be Australian citizens or permanent residents and intend to live in the home.
How much deposit do you need for a Keystart loan?
Keystart accepts deposits from 2% of the purchase price, with no Lenders Mortgage Insurance charged. For a $550,000 Perth home that means $11,000 in deposit plus stamp duty and legal costs. Compared to mainstream lenders who require 20% to avoid LMI, Keystart can save first home buyers tens of thousands at purchase.
What are Keystart's interest rates compared to the banks?
Keystart rates are typically 0.50% to 1.50% higher than the sharpest mainstream variable rates, because the loan is designed as a stepping stone, not a long-term product. The trade-off is access. Borrowers who cannot qualify with a mainstream bank can get into a home now, then refinance to a cheaper lender once their equity or income lifts.
What is the Keystart exit strategy?
Keystart expects borrowers to refinance to a mainstream lender once their loan-to-value ratio drops below 80% or their income rises above the income caps. At that point a mainstream variable rate becomes available without LMI, and the rate drop usually saves several thousand dollars a year. Central Lending Solutions runs an annual Keystart review for clients to flag the refi window.
Can I use Keystart with the First Home Owner Grant in WA?
Yes. The Western Australian First Home Owner Grant of $10,000 is available for newly built homes and stacks with a Keystart loan as long as you meet both eligibility tests. Stamp duty concessions and the federal First Home Guarantee can also apply in some cases. We map every scheme you qualify for during your free strategy chat.
Does Central Lending Solutions handle Keystart applications?
Yes. Central Lending Solutions is Keystart accredited and lodges Keystart applications regularly for Perth first home buyers. We compare Keystart against 30 plus mainstream lenders for every client, then only recommend Keystart when it actually wins on the maths, not by default. There is no fee to the borrower.
How long does a Keystart loan take to approve?
Keystart conditional approval typically takes 5 to 10 business days from a complete application, slightly longer than the major banks. The Keystart team is small and processes WA applications only, so peak periods can extend the timeline. We pre-package every Keystart file to avoid back and forth and keep your offer-to-settlement window predictable.
Related
What else first home buyers in Perth ask us.
Keystart, or something better
Is Keystart actually the right loan for you?
Book a free, no-obligation chat. We will run Keystart against the mainstream panel and tell you honestly which one wins on your numbers. Most clients pay no fee.
- $1.2B+ settled
- 280+ 5.0★
- Keystart accredited
