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Easystart Homes’ recently opened Candour display. Picture: Easystart Homes
Easystart Homes has welcomed the State Government’s decision to relax the home loan credibility criteria for buyers who use Keystart.
The change means income thresholds for borrowing from Keystart will be lifted by $15,000 for singles and couples and $20,000 for families.
This will see income limits increased to $105,000 for singles, $130,000 for couples and $155,000 for families buying a home valued at up to $480,000 in Perth.
Until 31st December 2019, the income threshold has been increased for the below:
- Singles: $105,000 (previously $90,000)
- Couples: $130,000 (previously $115,000)
- Families: $155,000 (previously $135,000)
This is great news for people who were originally earning too much to qualify for Keystart. While they were unable to obtain finance, they can now enter the property market. The move will also boost the housing construction industry and generate more WA jobs.
Easystart Homes Sales Manager Andrew Black said “Combined with record low interest rates, the $10,000 First Home Owner Grant and Easystart Homes’ Easy Assist promotion, first homebuyers have every reason to be excited,.”
“Now is a great time to build. With Perth’s property market in a soft recovery, committing to building a new home now means you will be able to reap huge rewards in 12 to 18 months’ time when we feel the market will once again be on the upswing.
“However, the lower barriers will only be temporary, lasting for six months until December 31 this year, so potential homebuyers who are thinking of building are urged to begin the process.”
If you’re not familiar with Keystart, here’s a quick summary:
- It’s a Government scheme only available in Western Australia
- Applicants need to meet the eligibility criteria, which includes being an owner-occupier, Australian citizen or permanent resident
- The property purchase price caps at $480,000
- Only a 2% deposit is required
- There is no Lenders Mortgage Insurance
Keystart Home Loans is an initiative of the Western Australian Government and is available to homebuyers who don’t currently own a property and are purchasing a dwelling to live in.
For homebuyers that qualify for assistance, Keystart offers home loans from as little as two per cent deposit with no lenders mortgage insurance.
The State Government estimates the increase to loan income limits under Keystart will make the initiative accessible for around 11,000 additional households.
Keystart will accept applications using the higher income limits from this month. Sales contracts must be settled after July 1 to access the threshold changes.
- Easystart Homes 6555 7540, www.easystarthomes.com.au.
- Keystart 1300 578 278, www.keystart.com.au.
Disclaimer; the information contained in the above article have been sourced from articles written and produced by “Move Homes” https://www.movehomes.net.au/changes-to-keystart/ and Andrew Snelling from The West Australian https://thewest.com.au/lifestyle/new-homes/keystart-changes-win-industry-tick-c-109317
