If you have ever thought about owning your own home one day but thought how the heck will I save up enough for a deposit? Then listen up, this one’s for you! Keystart Home Loans have just announced exciting news for West Australian Home Buyers and you’re gonna love it!
Previous requirements for a Keystart home loan.
So, different lenders have different rules regarding deposits and lending. Keystart only requires a 2% deposit of the total house price, however, of that 2% deposit, 1% must be genuine savings. So for a home loan of $400,000, you would need to have a deposit of $8,000 of which $4,000 needs to be evidenced as genuine savings. See the examples below of what “Genuine Savings” look like from the Keystart website.
Genuine savings examples
Let’s consider the $4,000 genuine savings example above. If, over a three-month period, your bank statements show:
- your balance starts at $3,000 and by the end your balance is $4,000, this demonstrates genuine savings.
- your balance at the start is $4,000 and at the end is $4,000, this demonstrates genuine savings.
- your balance starts at $7,500 and at the end, your balance is $4,000, this demonstrates genuine savings.
- your balance goes from $7,500 down to $2,500 but then gradually back up to $4,000 by the end, this demonstrates genuine savings.
- your balance decreases from $4,000 to $3,000 at the end of the three months, this does not demonstrate genuine savings as the end balance is below the required genuine savings amount.
Changes to the requirements (The EXCITING bit!)
No longer will Keystart clients be required to prove 1% of their deposit as genuine savings. This mean that a although 2% deposit is required, the First Home Owner’s Grant of $10,000 can be used towards your deposit! How good is that? So when you hear us say”get into your first home with no savings” we mean it!
Even if you are not a first home buyer, this is a huge help for those in situations where funds have been gifted or have come in the form of a tax return for example which didn’t previously qualify as genuine savings.
This Keystart update is great news for West Australians looking to achieve the dream of home ownership. If you have questions about how these changes could help you build your first home sooner, get in touch with our team and we can get you started. Or alternatively, get in touch with our in-house finance team at V Home Loans and they can go through your financial situation in detail. More information is to be released soon and we will keep you in the loop with any more changes.
Just want to see if you qualify for a home? Take our online quiz
V Home Loans Phone: 1300 656 637