Keystart Home Loans Perth
A plain-English guide to the Western Australian Government's low-deposit home loan: how it works, who qualifies, and when it makes sense. Figures current as at 2026.
What is Keystart?
Keystart is a home loan lender owned by the Western Australian Government. It was set up to help people who can comfortably afford repayments but struggle to save the large deposit a mainstream bank expects. Because it is a WA Government initiative, it is only available in Western Australia, which is why it is such a common question among Perth buyers and is often the first option first home buyers hear about.
Key features
- Low deposit. You can buy with as little as a 2% deposit, where most lenders want 5% to 20%.
- No LMI. You do not pay lenders mortgage insurance (LMI, the one-off insurance normally charged when you borrow more than 80% of the property value), which can save thousands.
- No guarantor needed. You do not need a family member to guarantee the loan.
- Eligibility caps instead. In place of those perks, Keystart applies income and property price limits (below).
Keystart eligibility and limits (Perth metro, 2026)
Keystart reviews its limits regularly, so treat these as a guide and confirm the current figures at keystart.com.au before relying on them:
| Criteria | Perth metro (approx, 2026) |
|---|---|
| Minimum deposit | 2% |
| Lenders mortgage insurance | None |
| Income limit, single | around $148,000 to $155,000 per year |
| Income limit, couple or family | around $218,000 to $228,000 per year |
| Property price cap | around $800,000 to $860,000 |
You also generally need to be buying the home to live in (owner-occupier), be an Australian citizen or permanent resident, and meet standard credit and serviceability checks. Regional WA has different caps.
The trade-off: rate vs access
Keystart's interest rate is usually higher than the sharpest bank rates. That is the deliberate trade-off: you get in the door with a small deposit and no LMI, but you pay a little more while you are on it. For many buyers that is a worthwhile swap, because saving a full 20% deposit in Perth's market can take years.
The exit strategy: refinancing off Keystart
Keystart is best thought of as a stepping stone, not a forever loan. The common path is to start with Keystart, let your equity grow as you pay down the loan and the property value rises, then refinance to a mainstream lender once you cross roughly 20% equity, usually at a lower rate. Knowing when that point arrives is exactly the kind of timing a broker can help with.
Keystart vs the First Home Guarantee
Keystart is not the only low-deposit route. The federal First Home Guarantee also lets eligible first home buyers purchase with a 5% deposit and no LMI, and from 1 October 2025 it removed its income caps. Which option suits you depends on your deposit, income, the property price and whether you are a first home buyer. The two are worth comparing side by side rather than assuming Keystart is automatically the answer.
How a broker helps
A broker can compare Keystart against low-deposit alternatives across a panel of lenders, show you the real cost difference, and plan the refinance-out step so you are not stuck on a higher rate longer than you need to be. You can also estimate your numbers first with our borrowing power calculator and our WA stamp duty calculator.
Wondering if Keystart is right for you?
Tell us your situation and you can speak with a Perth broker who can compare Keystart against your other options. Free, no obligation.
find a Perth BrokerFrequently asked questions
What is a Keystart home loan?
Keystart is a home loan lender owned by the Western Australian Government. It helps people who can afford repayments but cannot save a large deposit, by lending with a low deposit and no lenders mortgage insurance. It is only available in WA.
How much deposit do you need for Keystart?
Keystart can be accessed with as little as a 2% deposit, where most lenders want 5% to 20%. You still need to cover other costs such as transfer duty. Confirm the current minimum at keystart.com.au.
What are the Keystart income limits in Perth?
As at 2026 the Perth metro income limits are roughly $148,000 to $155,000 for a single applicant and roughly $218,000 to $228,000 for a couple or family. Keystart has lifted these in recent years and sources quote slightly different figures, so confirm the current limit at keystart.com.au.
Is there a property price cap with Keystart?
Yes. As at 2026 the Perth metro property price cap is roughly $800,000 to $860,000, having been raised in recent updates. Regional WA has different caps. Confirm the current cap at keystart.com.au.
Is Keystart a good idea?
Keystart can be a good way into the market if you have a small deposit, but its interest rate is usually higher than the sharpest bank rates because it is a transitional product. Many borrowers start with Keystart, build equity, then refinance to a mainstream lender. Whether it suits you depends on your situation.
Can you refinance off Keystart?
Yes, and many people do. Once you have built enough equity (commonly around 20% of the property value), you can refinance to a mainstream lender, often at a lower rate. A broker can tell you when refinancing is likely to stack up.
Keystart is a separate, third-party lender owned by the WA Government; this page is general information, not financial or credit advice, and is not affiliated with or endorsed by Keystart. Figures are current as at 2026 and change, confirm the latest at keystart.com.au. Perth Home Loan Broker is an enquiry website; licensed mortgage brokers provide all credit advice under the National Consumer Credit Protection Act 2009. See our disclaimer.