Keystart Home Lending Policy 2025: What Borrowers Need to Know
Snapshot / TL;DR
Keystart’s Home Lending Policy (August 2025) outlines clear rules for affordable homeownership in Western Australia.
Key message: Keystart helps low-to-moderate income earners buy their first home sooner - responsibly.
Top Takeaways
- Must be an Australian citizen or permanent resident, aged 18+
- Maximum income: $148,000 (single) / $218,000 (couple/family) in most regions
- Deposit: As little as 2% of the property value
- Loan cap: Up to $784,000
- Loan term: Up to 30 years, with retirement safeguards
- Not eligible: Companies, trusts, or owner-builders
Why It Matters
Buying your first home in WA can feel out of reach - with rising property prices, tight savings, and complex lending criteria. Keystart bridges that gap by offering accessible, low-deposit home loans.
This 2025 policy update (Version 3.0 - August 2025) enhances transparency, consistency, and fairness - aligning with the National Consumer Credit Protection Act and Keystart’s Credit Risk Management Policy.
Key Eligibility Criteria
- Be 18 years or older, live in (or be moving to) Western Australia, and be a citizen or permanent resident
- Own no other residential property in Australia or overseas
- Meet income limits by region:
- Perth / Regional WA: up to $148,000 (single) or $218,000 (family)
- Kimberley & Pilbara: up to $285,000
Applications may be declined if income exceeds limits, recent bankruptcies exist, or the borrower cannot demonstrate repayment ability.
Borrowing Limits & Loan Terms
Maximum Loan Amounts
| Region | Max Property Value | Max Loan | Minimum Deposit |
|---|---|---|---|
| Perth Metro | $800,000 | $784,000 | 2% |
| Regional WA | $800,000 | $784,000 | 2% |
| Kimberley / Pilbara | $800,000 | $784,000 | 2% |
Loans are assessed for serviceability (ability to repay) and suitability (fit for borrower needs) in line with responsible lending laws.
Loan Terms
- Maximum term: 30 years
- If the loan extends past age 75 or expected retirement, an exit strategy must be provided
- Keystart avoids loans reliant on home sale for repayment
Acceptable Security
Keystart loans must be secured by a first registered mortgage over a residential property in WA.
Not Accepted:
- Leasehold or commercial properties
- Purple title or split-contract developments
- Owner-built homes
Properties must be habitable (kitchen, bathroom, power, water, sewer) and within regional lending limits.
Income & Deposit Requirements
- Proof of income required (e.g., ATO assessment, payslips)
- Net Disposable Income Ratio (NDI): Must be ≥ 1:1
- Acceptable deposits: personal savings, gifts, and First Home Owner Grant (FHOG)
Borrowed deposits are not allowed.
Tip: If you have over $35,000 in liquid savings, Keystart may require you to reduce your loan amount.
🏗️ Construction Loans
Keystart supports both on-site builds and modular homes, releasing funds in progress payments (slab → roof → lock-up → completion).
Requirements:
- Builder indemnity insurance
- Compliance certificates before final payments
Credit History & Liabilities
- No bankruptcies within 2 years of discharge
- Defaults under $5,000 must be cleared for 12+ months
- Defaults over $5,000 must be cleared for 24+ months
- Borrowers in hardship must wait 3+ months post-resolution
- All credit cards and "buy now, pay later" facilities must be under control or closed
Fees & Insurance
- Building insurance naming Keystart as mortgagee
- Home indemnity insurance for all new builds
- Strata insurance for units or apartments
⚠️ Common Mistakes to Avoid
- Overestimating income - only provable, ongoing income counts
- Using borrowed deposits - Keystart verifies bank statements
- Buying non-residential properties - dual-purpose homes may be rejected
- Ignoring regional property caps - $800,000 is the maximum
Frequently Asked Questions (FAQs)
Q: Can I refinance my non-Keystart loan to Keystart?
A: No, only existing Keystart borrowers can refinance.
Q: Can I apply jointly with a friend or sibling?
A: Yes, up to two borrowers can apply and are assessed as a “couple” for income limits.
Q: Do I need to live in the home?
A: Yes. Keystart loans are for owner-occupied properties only.
Final Word
The Keystart Home Lending Policy 2025 modernises how Western Australians access affordable homeownership. By balancing accessibility with responsible lending, Keystart continues to open doors for first-home buyers who might otherwise be locked out of the WA property market.