It's good if you aren't a saver... like me
I'm terrible at saving, money is like water in my hands. I'm on an ok income but just couldn't get a deposit together, those cheap flights pre covid kept wiping out my savings! I'm now 6 months in and paying back more than my minimum amount. Interest is about 4.5% and overall I'll probably end up paying them the same amount as the LMI, or even a little more. But I don't really care. I've got the house I want and managing payments, and still putting some away for when travel opens back up!
Do your research, see whats good for you. If you are anything like me, I would recommend!
We just refinanced our mortgage yesterday but we were with Keystart for just under 7 years. The staff are friendly and knowledgeable. I highly recommend Keystart for people who are unable to save a large deposit for their new home. Yes the interest rate is high, but they encourage you to refinance as soon as you are able to and they help you get in to the property market a lot sooner.
Keystart are who you go with if you cant go with a bank
Been with Keystart now for around 5 years . We had a rocky start as they held onto our loan papers for 4 weeks with no one looking at them when Christmas was approaching we reached out to Keystart and got back to us within the hour and fixed the problem i went and picked up the documents from perth and were in our house before Christmas .
The Interest rate is Higher which is expected if you didnt save and dont want to pay 20k odd in lenders mortguage insurance u eventually pay with the higher interest rate your not getting anything for free ....A month period to Keystart is 4 weeks in month so they calculate your payments of month / 4 which is ok but makes it a little higher than if you went say month x 12 / 52 . But paying extra is never a problem as Keystart do allow you to skip a payment if your ahead tho they do want you to be ahead on your repayments and will ask why you are taking the money out . Interest rate is calculated on the big 4's Standard Variable rate which is stated in every rise letter your recive but since march and the pandemic there has been 2x rate drops in that time and the Big 4 have dropped their Standard but Keystart has stayed around 4.54% Over all they are not a bank they allow people who banks wont even look at to get their foot into the door so 5 years down the track you can get into a bank later which is hard atm with the pandemic and property Dip .
Great customer service, but is a trap
I have been in my property for four years. I paid $410800 in 2016 to have my property built. It's now 2020 and discovered that I only owe $389000. Interest back in 2016 was 5.55% and now in 2020 is a laughable 5.54%. Interest.
I'm glad I was given the opportunity to get the house, but now I want to refinance but can't because it's become a trap with the interest rate being so high. We've been paying anywhere from $1000 - 1200 per fortnight or weekly. Currently $1000 per fortnight.
When you sum this up - look into the figures closely - It's not worth it. You don't pay anything on the mortgage as it all seems to go into the very hungry hands of KeyStart.
We found Graeme very friendly and approachable, informative and helpful, we are in trying times and Graeme was patient and confident that I would secure my finance. I appreciate all his efforts in making this happen.
Don’t Get Fooled, Go to Bank If You Can!
First glance, it looked as a great deal for a newbie with no savings needed. But after 5 years stuck with them under shared-equity program, I learnt the hardway truths:
1. Currently 4.5% loan interest amongst 1.9-2.5% of normal banks
2. Works only on increasing market. You’ll get stuck when market slumps down
3. Owner occupier only, no option to rent out
4. You can’t have second house under any circumstances
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Keystart what a joke!!! Don’t waste your time!
Keystart is the biggest joke in history a home loans!!! A very stressful experience !
I called Keystart six weeks ago before I applied for my home loan and asked, if I’m on workers comp can I still apply for a home loan? They said yes no problem! So I applied for the home loan got preapproval put a $2000 deposit down with the builder had a $2000 deposit on the land. Got my preapproval letter to be told later that because I don’t have an end date to my workers comp because I have PTSD which I sustained in my job that I can’t get a home loan and ...
Being Prepared is Key - Overall a positive experience
Initial application in April until Settlement in July...Yes, be prepared for Keystart's microscopic and time consuming approach of your finances - income/bank statements/spending (even Afterpay - and my embarrassing moment of having to prove I had paid in full for that sexy lingerie I had purchased!!), but my rational approach and understanding through countless hours of reading up on pre-aproval do's and dont's, gaining a good understanding of credit scores/DTI's, working hard (i appreciate that I was lucky enough to not have my job affected b...y covid19) and saving hard made me understand why Keystart asked the many questions that they did, via my Broker. It was an overall valuable experience and I am grateful I achieved Formal Approval. And for those who are doing it solo like myself - it is achievable! Correspondence was at times slow, but I found the online application tracker informative, and accepted that if the broker had not heard from keystart is was a matter of waiting patiently. My strongest advice - and Keystart make this clear on their website - once you have Loan Approval and start paying your mortgage (I am currently at Lock Up stage with mine) - MAKE EXTRA PAYMENTS - get ahead and achieve that Advance position, so you can then be in a better position to refinance with another lender with the lower interest rates (whilst remaining realistic about current market etc).. Good luck to future Keystart applicants....and thank you Keystart. Regards Michelle
Unrealistic property values
Building a new 4bed/2bath house, costing $400k. Pre-approval went well, although dragged out for 5 weeks. KeyStart confirmed we could afford what we were going to borrow. Next was the valuation of land+house. Their independent assessor said the value was $340k based on 3 months of sales within the area. I checked a few sites and the overall sales were around $350k for pre-established houses, but when narrowing to 4-bedroom houses, it was more around $380-$420k on similarly sized blocks. It's almost like the assessor didn't factor in the size o...f the block or house. The broker, builder and land agent were gob-smacked by the $340k evaluation. Obviously the builder or land agent won't drop their prices, so we're not sure who will be building out that way with KeyStart, unless they purchase a small block/house or have a large deposit - but then go to the bank instead. Our broker put us in touch with BankWest, who assessed the house and land we were buying and said it was a fair price. Apparently KeyStart won't accept assessments from other assessors, so we'll have to kiss those 5 weeks goodbye. BankWest have a couple more financial hurdles for us to jump through, but will have the application reviewed in a shorter period of time. Thankfully we're in a position where we can tap into a bit more of our savings to go with the bank (although we'll have to add LMI into the mix). Just be aware that KeyStart independent assessors may lowball house/land values. I'm not sure if you can determine this before pre-approval. The 5 week time frame is a long, anxious wait.
Go to a bank
First of all this agency is called Keystart however there was nothing to suggest that this organisation is willing to help middle class families a chance to buy a home in WA. This has to be the most stressful and time wasting experience I’ve had in Perth.
We applied to keystart back in July and took 3 weeks Before we got declined.
We then re-applied to them and after 8 weeks we got Pre-approval which we where so happy at the time because we had already signed our contracts for our home and was told by our builder to crack open the Champagne....The next week we got together all the paperwork that keystart required and sent them through for Formal Approval. Nearly 2 weeks later I decided one Saturday morning to check the status of our loan application online and it came up DECLINED. I was absolutely devastated and straight away thought they had made a mistake but when I called my broker on the Monday she said it was down to a previous debt which was paid and wasn’t any fault of mine as I explained this in a letter. I decided to appeal and was speaking to a lovely lady who told me to send the letter again and she would pass it on to the assessment team for review.
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Contacted keystart twice on Facebook Messenger for two different reasons. Both times there customer service representative replied quick and both issues were resolved in a fast timely manner. Very very happy!
As first home buyers it was a very stressful process overall, but so worth it. I've read many bad reviews on here which tends to repeat the same thing. Be sure to read the contract word for word, most reviews on here state things that are stated in there contracts.
Keystart offer a low deposit, higher interest rate to allow people to ge...t into the market (stepping stone). If you want a lower interest rate, save a higher deposit. Based on our experience we are happy with the rate because we were able to enter the property market with a low deposit. I would highly recommend keystart if you want to get into your own home, great customer service especially during such a busy and demanding time. Thank you again A++++
Hard work but got there in the end
After 3 attempts i eventually got my loan approved.
Keystart asked me a million questions including things like having to provide my sons passport to prove he was my son.
But there is a reason for everything (which is often not obvious) and if you persist and have patience you are likely to get there.
A special thanks to Jade from their complaints resolution area who helped me with my loan. She explained a lot of things and i wouldnt have got there otherwise.
Been helpful for me
6 months ago i enteted into the market with the help of keystart and have had no problems. Of course I knew before enteting that the interest rate was going to be higher due to me having a small deposit etc but its still manageable and they save you thousands on not charging stamp duty.
It is also really easy to manage your repayments online which i love.
Each week you can change the figure if you want, just as long as the minimum amount is in there.
I'd definitely recommend to have weekly repayments as it saves you $ in the long run.
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They seem to not adjust rates if out of session movement in rates
Keystart state that they adjust in line with average of the big 4 banks. My current rates are 4.54%. I am perplexed why Keystart have failed to adapt the out session reduction in interest rates by the big four banks that have occured over the preceeding few months. According to my account page Keystart state:
ANZ Standard Variable Home Loan 4.54% effective 13 March
CBA Standard Variable Home Loan 4.55% effective 24 March
NAB Tailored Home Loan variable rate 4.52% effective 13 March
Westpac Rocket Repay Home loan 4.58% effective 17 March
As at ...today these are the current figures ANZ Standard Variable Home Loan 4.39% with comparison 4.49% CBA Standard Variable Home Loan 3.85% with comparison 4.27% NAB TailoredHome Loan variable rate 2.39 with comparison 4.45%
Our experience was a positive one even though the process was long and thorough, overally it was all worth it.We used our broker Alun Vernals,provided all the paperwork required and got our loan formally approved in the end.Highly recommended!!
Questions & Answers
My partner and myself are looking to get a loan through Keystart. My partner is full time but I’m causal. Will me being causal affect our chances of getting approved even if my partner is full time? I’ve used afterpay quite abit this year but have never missed a payment. Will this affect it also?
Hi Britney – thank you for your question. We do assess casual income, so it won’t affect your chances of getting a loan. We require that you have been employed in your casual position for at least six months.
Your Afterpay account won’t affect your borrowing capacity, that is the amount you may be able to borrow. However if your home loan application is conditionally approved, we will require you to close your Afterpay account before progressing to formal approval. You might find it helpful to read more about the conditional and formal approval stages on our website. https://www.keystart.com.au/loans/how-it-works/the-home-loan-process
You can contact our team on 1300 578 278 or email email@example.com if you would like to discuss this further.
Hi can I get some advice I have currently pre approval on key start but when their valuation come to our house and land contract price there is a shortfall of $25000. I want to try to other bank but Im worried that it might be a low valuation again so my plan now is to find other builder that almost the same to our houseplan but the price is lower than the first builder. Can I still be able to use my pre approval or need to do another application to keystart ? Thank you very much.
Hi there, thanks for reaching out. It's possible to use your current conditional approval with Keystart with another builder as long as you are within the 120 days that your conditional approval is valid. In the case that you consider another builder, Keystart will require the new building contract and we will need another valuation to be completed. This valuation will need to meet the current market value of your property. It's important to keep in mind that if you decide to switch builders, you may lose your deposit with your current building company.
If you contact your broker or Keystart Home Loan Specialist they can let you know your options in this situation. You can contact the Keystart team on firstname.lastname@example.org or on 1300 578 278.
I’m a NZ citizen who is NOT a permanent resident living here in WA indefinitely. Am I eligible for a keystart home loan?
Hi Tracey - thanks for your question. There are a number of criteria to be eligible for a Keystart home loan.
Firstly, you need to be a citizen or permanent resident of Australia. We also consider applicants if you have applied for permanent residency and are in the 24-month waiting period category and have a Visa Grant Notification.
Our loans are for owner-occupiers only, meaning we require that the home you are taking out the loan for is where you are going to live for the duration of your loan with us and that it won't be rented out. You can check out our other eligibility criteria here https://www.keystart.com.au/loans/how-it-works/before-you-apply
You can find out if you may be eligible by heading to 'Do I qualify' on our website. This step takes about five minutes and we'll also be able to let you know how much you may be able to borrow. You can also reach out to our team on email@example.com or 1300 578 278 and they can let you know if you may be eligible for a Keystart home loan https://www.keystart.com.au/do-you-qualify-for-a-home-loan
Get an answer from our members and Keystart representatives
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