As a government-backed initiative, Keystart offers the residents of WA the opportunity to get into the property market.
Keystart is a great government initiative to help people with a low deposit enter the property market in the state of Western Australia. The scheme allows buyers with a low deposit to purchase an owner-occupied property. Despite the common misunderstanding, it is available previous owners of property as well as first home buyers.
In addition to enabling people to achieve home ownership with a low deposit, Keystart borrowers can avoid paying lenders mortgage insurance (LMI) which can otherwise be very costly and be yet another barrier to securing finance for a home purchase. At Chesswork Finance, we are very experienced with helping people achieve their dream of getting out of the rent trap and realising their goal of buying or building their new home with Keystart.
Getting out of Keystart
Keystart is a fantastic option for people that would otherwise not be able to get a home loan approved with a regular lender. However, Keystart even states on their home page that they are a ‘transitional lender’ and they encourage Keystart borrowers to refinance to another lender when they are in a position to do so. The reality is that, even though you do not have to save the usual minimum 5% deposit required by other lenders, and you avoid paying thousands in LMI, the interest rate with Keystart is much higher than what is on offer in the open market of lenders in Australia.
How Chesswork helps
One specialty that we are very proud of at Chesswork Finance is helping people move on from Keystart loans and into loans with much lower interest rates when they have enough equity to do so. We always try to find much more cost effective ways of getting into home ownership such as using gifted funds from parents or obtaining a guarantor loan, but if Keystart is your best option we can help but, the goal is always to move on from that loan as soon as it is possible. If you are interested in getting a Keystart loan or are already in a Keystart loan and would like to know you options for transitioning to a more suitable loan product, get in touch and we will see what we can do.
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