Good Afternoon,
As you would be aware, Keystart is a State Government owned scheme primarily aimed at assisting
first home buyers on moderate incomes into owner occupied housing. Our objective is to assist West
Australians to obtain home ownership when they cannot obtain housing finance through
mainstream lending. Over the past couple of years Keystart has assisted the Industry in providing
affordable finance options with our share in the First Home Buyer Market increasing from 3% in
2012 to 17% in 2015.
Funding for Keystart is raised through the Western Australian Treasury Corporation (WATC). The
West Australian Government has provided a $5 billion debt facility to achieve this result. This is the
highest level of facility provided in the history of Keystart. However, Keystart will exceed this limit
under current criteria and commitments as part of its anti-cycling role, therefore it needs to adjust
criteria.
Keystart are exploring other financing options such as securitisation to fund future lending activities
and ensure the longevity of Keystart. This will place less reliance on WATC funding. Due to the
growth in the portfolio over the last couple of years Keystart now need to review its lending criteria,
particularly in the metropolitan area to ensure we do not go over our debt facility.
Following a review of our current eligibility criteria, Keystart will therefore be reducing the maximum
income limits for its standard loan product in the metropolitan area effective 5pm 1st May 2015.
The new income limits that will apply from 5pm 1st May 2015:
Household Type
Singles
Couples
Families
Current Limit
$95,000
$115,000
$135,000
New Limit
$75,000
$95,000
$115,000
Keystart will allow 4 business days (Tuesday 28th April –COB Friday 1st May) for brokers to submit
applications under the previous criteria. The application must however meet ALL minimum
requirements otherwise it will be declined or deferred.
Note: Where an application is declined or deferred and additional documentation is received after
5pm 1st May which results in the application to be re-assessed, the application must fit within the
new income limits.
Further, in light of recent falls in property prices in the Pilbara and Kimberley, new purchase price
caps will apply from 5pm 1st May 2015 as follows:
Current purchase price
Pilbara
$850,000
Kimberley
$700,000
New Purchase Price
$700,000
$600,000
If you have any further questions regarding this, please do not hesitate to contact myself on 0400
633 877 or the Business Development Team (Mark on 0433 957 937 or Corinna on 9338 3141).
We thank you for your ongoing support of the Keystart scheme and look forward to our continuing
role in providing affordable home finance options for West Australians.
Kind Regards,
Lisa Di Cesare | Executive Manager
Sales, Marketing & Client Relations
Keystart Loans Ltd
Tel: 08 9338 3230 | Fax: 08 9338 3150
www.keystart.com.au
ABN: 27 009 427 034
Australian Credit Licence: 381437