For many Perth residents, saving a 20% deposit while paying rent feels like running on a treadmill. Keystart was created specifically to help West Australians break that cycle. As a WA Government initiative, Keystart offers low-deposit home loans with no Lenders Mortgage Insurance (LMI) and in 2026, the eligibility criteria have been expanded to help even more people get into the market.
If you have looked at Keystart before and did not qualify, it may be worth checking again. Here is everything you need to know about how Keystart works, the updated 2026 limits, and how to apply.
What Is Keystart?
Keystart is a home loan provider owned by the Western Australian Government and overseen by an independent board. It was established in 1989 with the aim of helping West Australians who struggle to meet the deposit or income requirements of mainstream lenders.
Keystart is what is known as a transitional lender. This means it is designed to get you into a home sooner, not necessarily to keep you there for the life of the loan. Once you have built enough equity and your financial position has improved, Keystart actively encourages borrowers to refinance to a mainstream lender for a more competitive rate.
How Keystart Differs From a Standard Home Loan
The key differences between a Keystart loan and a typical bank loan are as follows. Keystart requires a deposit of as little as 2%, compared to the 5% to 20% typically required by major lenders. There is no requirement to pay LMI, which can save borrowers tens of thousands of dollars. Monthly account-keeping fees are also removed. During construction, weekly repayments are capped at just $100, making it easier to manage rent and build costs at the same time.
The trade-off is that Keystart’s interest rate is generally higher than what competitive mainstream lenders offer. However, for buyers who are not yet in a position to access those lenders, Keystart provides the entry point. You can explore low deposit home loan options across a range of lenders alongside Keystart to compare your choices.
Updated Keystart Income and Property Limits for 2026
Keystart has made significant updates to its income and property price caps in recent years, with the most recent changes taking effect in late 2025. Here is a summary of the current limits applicable to the Perth metropolitan area.
The income limits are now $148,000 per year for singles and $218,000 per year for couples and families. These limits were increased from $137,000 and $206,000 respectively, meaning many applicants who did not previously qualify may now be eligible.
The property price cap has also been raised to $800,000 for Perth metro, up from $730,000. This is a significant change given that Perth’s median house price has moved well above $800,000 in many suburbs, but it still opens the door to a wide range of established homes, townhouses, and house and land packages in Perth’s growth corridors.
For regional Western Australia, different income and property price limits apply. It is worth confirming the current figures directly with a broker or through the Keystart website.
Who Is Eligible for a Keystart Loan?
To be eligible for a Keystart home loan you must be an Australian citizen or permanent resident, currently living in Western Australia, and intend to live in the property you are purchasing. You cannot own another property at the time of settlement. You also need enough funds to cover all purchase costs including your deposit, stamp duty (if applicable), and any other fees.
Keystart is not exclusively for first home buyers. Subsequent buyers who do not currently own a property can also apply, provided they meet the income and property price requirements.
If you are a first home buyer, it is worth reading our guide to first home buyer grants and schemes in Perth as Keystart can often be combined with the First Home Owner Grant (FHOG) and stamp duty concessions to significantly reduce your upfront costs.
What About Credit History?
One of the features that sets Keystart apart from mainstream lenders is its approach to credit history. Keystart does not automatically decline applications due to a poor credit record, defaults, or previous bankruptcy. Each application is assessed on its individual merits, which makes Keystart a genuine option for borrowers who have faced financial difficulties in the past.
The Keystart Shared Ownership Option
For buyers who need additional support, Keystart also offers a Shared Ownership loan. Under this arrangement, you purchase a share in a property that you co-own with the Housing Authority. You pay rent on the Housing Authority’s share and have the option to buy out their portion over time as your financial position improves. This option can make homeownership accessible to applicants who would not qualify for a standard Keystart loan.
When Should You Refinance Out of Keystart?
Because Keystart’s interest rate is higher than what mainstream lenders offer, many borrowers look to refinance once they have built sufficient equity typically when they reach an LVR of 80% or below. At that point, switching to a more competitive lender can meaningfully reduce monthly repayments.
Our team can help you assess when the right time to refinance is and which lenders offer the most competitive rates for your situation. You can learn more about home loan refinancing in Perth on our website.
How to Apply for a Keystart Loan
The application process for Keystart involves a few key steps. First, you should check your eligibility based on the income and property price caps. Second, you will need to gather your financial documents including proof of income, bank statements, and identification. Third, you apply either directly through Keystart or via a mortgage broker who can manage the process on your behalf.
Working with a mortgage broker gives you the advantage of comparing Keystart against other low-deposit options available from mainstream lenders at the same time. In some cases, another lender may offer a lower rate or a better-suited loan structure for your situation.
At Central Lending Solutions, our brokers are experienced in helping Perth buyers navigate the Keystart process alongside other low deposit and first home buyer options. We can help you understand which path gives you the best outcome for your specific circumstances.
Frequently Asked Questions
Can I use the First Home Owner Grant with a Keystart loan?
Yes. Eligible first home buyers purchasing or building a new home may be able to use the $10,000 First Home Owner Grant alongside a Keystart loan. The grant can be applied toward your deposit or purchase costs, further reducing the amount you need to contribute upfront.
Is Keystart only available in Perth?
Keystart loans are available across Western Australia, including regional areas. However, the income and property price caps differ between the Perth metropolitan area and regional WA. Current limits for regional areas can be confirmed through Keystart directly or via a mortgage broker.
Can I make extra repayments on a Keystart loan?
Yes, Keystart allows extra repayments at any time without penalty. Making additional repayments is a useful strategy for building equity faster, which in turn brings forward the point at which you can refinance to a more competitive rate.
What happens if I do not qualify for Keystart?
If you do not meet Keystart’s eligibility criteria, there are other low-deposit options available. The federal Home Guarantee Scheme allows eligible buyers to purchase with as little as a 5% deposit without paying LMI through participating lenders. A mortgage broker can help identify which scheme or lender is the best fit for your situation.
How is Keystart’s interest rate set?
Keystart’s variable interest rate is linked to the movements of the Reserve Bank of Australia’s official cash rate and is benchmarked against the standard variable rates of the major banks. While Keystart’s rate is generally higher than the most competitive rates in the market, the absence of LMI and the low deposit requirement often makes it the most accessible path to homeownership for eligible buyers.
Ready to Explore Your Keystart Options?
Whether you are wondering if you qualify for Keystart or want to compare it against other low-deposit loan options, our team at Central Lending Solutions can help. We have over 20 years of experience helping Perth buyers find the right loan for their situation at no cost to you. Get in touch today to book a free consultation.