Finance

The First Home Loan Deposit Scheme (FHLDS) helps eligible first-time homebuyers by allowing them to purchase a property with as little as a 5% deposit, without needing to pay lenders mortgage insurance (LMI). Under the scheme, the National Housing Finance and Investment Corporation (NHFIC) guarantees part of the home loan from a participating lender. This enables first home buyers to secure their home sooner, with a reduced deposit requirement compared to the usual 20%.

Keystart offers WA residents an opportunity to access low-deposit home loans with no mortgage insurance. While the industry typically requires a 5% deposit, Keystart allows loans with just 2%, plus no mortgage insurance or account-keeping fees. Residents can also benefit from reduced loan repayments during the construction, easing the financial load for first-time buyers. In order to access a Keystart loan, you must meet certain criteria.

Construction loans are tailored specifically for homebuilding, unlike regular home loans. Rather than providing the full loan amount upfront, construction loans release funds in stages as the building progresses. These loans also often have a variable interest rate during the construction period, and you only pay interest on the drawn amount. Once construction is complete, the loan converts into a regular home loan, with standard repayment terms.