- Keystart is backed by the WA government
- 4,687 WA homebuyers have benefitted from the program this year alone
- Significant increase in Keystart customers refinancing due to increased equity
Western Australian government-backed transitional lender Keystart has announced a 282% increase in the number of customers refinancing within the first two years of their loan.
Keystart offers low deposit home loans – with no lenders mortgage insurance – significantly lowering the entry costs to purchasing a residential property.
The catch? Interest rates are higher and there is eligibility criteria, most notably income limits depending on personal circumstances.
However, once in a position to do so, Keystart encourages customers to refinance with traditional lenders.
“Strong property values at the moment are contributing to record refinancing rates at Keystart, and this is great news,” said Keystart CEO, Paul Graham.
“It means more and more Western Australians who have got their foot in the door using Keystart, have built enough equity in their homes to refinance with traditional lenders.”
Lenders quickly refinancing
A combination of low interest and the strong property market has allowed customers to refinance steadily since 2019. A 42% lift in refinancing rates occurred during 2019 and 2020, with a 275% increase from 2020 to 2021 year-to-date.
So far in 2021, the lender has helped 4,687 Western Australian purchase a home.
In other data released today, there was a 282% increase in the number of customers refinancing during the first two years of their loan, with a 290% increase during the first year.
This data is promising, given the average customer spends five years with Keystart before transitioning, and the purpose of the scheme is to get people on the property ladder.
“So many Western Australians want to own their own home, but what are their options? If you haven’t got the $100,000 deposit, where do you go? Saving for a deposit is still the number one hurdle when it comes to owning a home in Australia,” added Mr Graham.
“That is really the role of Keystart, people can come in with $10,000 of their own money and leave with that $100,000 equity in their home.”
“Once that equity is built, they can get the better interest rate with a traditional lender and go on to have a secure long-term investment, and home to call their own.”