Finding the money for a deposit is often a stumbling block for many first home buyers.
Most lenders now require you to have at least a 5% deposit, which must be made up of savings or cash, rather than a loan. If you can put down a deposit of 10%-20%, this will often get you a lower interest rate on your loan, because there is less risk involved for the lender.
In Western Australia there is a new initiative to help Australians buy a home. Keystart Home Loans has been created by the Western Australian Government to “help eligible West Australians into affordable home ownership”.
So what defines ‘affordable housing’ exactly?
In Australia the term is used to describe “dwelling units where the total housing costs for either a rented or purchased unit are deemed affordable to those that have a median household income.”
The Keystart ‘Low Deposit’ home loan is a variable interest rate loan which could be used by owner-occupiers to buy an established home or build a new house.
With only a 2 per cent deposit and no mortgage insurance required, the initiative has begun to generate interest in the Golden State.
Keystart offers a variety of affordable housing finance options depending on an applicant’s region. These include a shared equity home loan and country home loans.
To qualify for a Keystart home loan it is important that you meet their criteria and find out whether you are eligible.
Aussie’s expert Mortgage Brokers have loads of experience in the Western Australian home loan marketplace and can help find out whether you are eligible for a Keystart loan. They will maintain a personalised approach and understand that your needs and situation are unique to you.
To speak to an expert Aussie Broker simply request a free appointment or call Aussie on 1300 44 55 66.