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Keystart launches low-deposit apartment home loan

by Annie Kane11 minute read
Keystart launches low-deposit apartment home loan

Non-bank lender Keystart has launched a two-year mortgage pilot with the Western Australian government that aims to encourage Western Australians to buy urban apartments.

Western Australian government-backed lender Keystart, which specialises in low deposit loans, has launched a new home loan product that aims to support home ownership while supporting “urban infill”.

The new loan product can be used to purchase apartments in medium and high-density developments with two or more bedrooms, close to transport hubs and in urban locations.

It is available for off-the-plan, new and established apartments in a complex of two storeys or more.


Keystart will off 300 Urban Connect Home Loans over the course of the two-year pilot, which will be accessible to Western Australian borrowers with a deposit of at least 2 per cent without requiring them to pay Lenders Mortgage Insurance (LMI).

The product has income limits of $180,000 for single borrowers and $200,000 for couples and families.

Purchase price limits are up to $550,000 for singles and up to $650,000 for couples and families.

The property price and income limits aim to ensure access to medium and high-density homes in locations close to transport and urban activity centres across 189 suburbs in the greater Perth area. 

The Western Australian government-backed lender will start accepting Urban Connect Home Loan applications from 25 July, with expressions of interest from eligible Western Australian residents being accepted from 13 July.

While the pilot will initially only be running through Keystart, it is expected that the product will eventually be made available to the broker channel.

Keystart chief executive Paul Graham welcomed the new product to Keystart’s home loan offering, adding: “The Urban Connect pilot is going to give us really valuable insight into the long-term need for a product like this in Western Australia. 

“We know that saving for a deposit to secure finance is the biggest barrier to home ownership for most people and is usually being saved simultaneously to people paying rent.

“Keystart’s low deposit home loans help people get their foot on the property ladder sooner and start building equity instead of paying rent, and we’re seeing a growing need for this type of assistance across more demographics and property types.

“By making home ownership more accessible to Western Australians, especially in urban areas and locations close to transport infrastructure, we can support infill targets and contribute to vibrant and engaged communities around greater Perth.” 

‘Delivering more affordable housing options for Western Australians near key public transport locations’

The Premier of Western Australia, Mark McGowan, commented: “My government continues to deliver reforms and initiatives that support more affordable housing to get people into homes while ensuring there are further incentives for urban infill. 

“The WA economy continues to outperform the rest of the country and it’s initiatives like these that support the significant pipeline of work into the future, keeping people in jobs and attracting more people to WA,” he said.  

Planning Minister Rita Saffioti said that the Urban Connect Home Loan was about delivering “greater housing diversity in urban infill areas, particularly around our key transport corridors”. 

“We want to see thriving communities close to our key public transport hubs and this new home loan will help drive that,” she said. 

“By having higher property price and income limits, we’re ensuring more people can access medium and high-density homes in locations close to public transport, including our METRONET precincts.”

Housing Minister John Carey added that Keystart’s Urban Connect Home Loan would support medium and high-density living while “creating and delivering more affordable housing options for Western Australians near key public transport locations and amenities.”

Mr Carey noted the state government was also delivering a range of tax reforms and incentives to boost housing and land supply, encourage urban infill and improving housing affordability across the state.

[Related: Brokers now recognised on WA Offer and Acceptance form]

urban infill


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