If you've been dreaming of owning a home in Western Australia but feel like rising property prices are keeping you on the sideline, Keystart may be the stepping stone you've been looking for. As of April 2026, the WA Government has announced significant updates to Keystart's product settings including higher purchase price limits of up to $860,000 and expanded income thresholds making home ownership more accessible than ever before.

This guide covers everything you need to know: what Keystart is, the updated 2026 limits, which loan suits you, eligibility requirements, and a step-by-step breakdown of how to apply.

What Is Keystart?

Keystart is a WA Government-backed lender (ABN 74 917 542 588, Australian Credit Licence 568102) that helps Western Australians get into home ownership sooner through low-deposit home loans. It is not a bank, and it is not profit-driven.

Its key advantages over traditional lenders include:

• A minimum deposit of just 2% (or $2,000, whichever is higher)

• No Lender's Mortgage Insurance (LMI), saving you thousands upfront

• All loans are principal and interest, for owner-occupiers only

• Available anywhere in Western Australia

• A free financial wellbeing coaching service for customers

Keystart is designed as a transitional lender; it helps you get started, and encourages you to refinance to a mainstream lender once you've built equity.

What's New in 2026? Updated Limits

The WA Government announced updated product settings on 15 April 2026, raising purchase price limits across multiple loan products to reflect current market conditions, including alignment to REIWA Perth median house prices.

Here is a breakdown by loan product:

1. Low Deposit Home Loan (Including Modular Home Loan)

This is Keystart's flagship product and most widely used loan.

2. Urban Connect Shared Equity Home Loan

Keystart's newest headline product allows the WA Government to act as a silent equity partner, boosting your purchase power by up to 35% or $250,000.

*Aligned to Perth median price for new one- and two-bedroom apartments

This loan requires only a 2% deposit with no LMI.

3. Urban Connect Home Loan

Tailored for buyers interested in urban or apartment-style living.

*Aligned to Perth median price for new one- and two-bedroom apartments

4. Shared Ownership Home Loan

A co-ownership model where you purchase a share of a property and gradually buy more over time.

*Aligned to REIWA Perth lower quartile house price

5. Skilled Start Home Loan (New Product)

Designed for apprentices, graduates, and skilled construction workers, this loan offers a discounted standard variable interest rate on top of the usual Keystart benefits.

Property price limits for Skilled Start:

• Established property: $700,000

• Off-the-plan, under construction, or new home: $750,000

Who qualifies? At least one applicant must be:

• Currently undertaking a formal apprenticeship, OR have completed one within the past five years

• A graduate with a Certificate III or higher (Cert IV, Diploma, Bachelor, or above) in any field, completed within the past five years

• A skilled worker in an eligible building and construction occupation who started in that role within the past five years, supported by a white card or similar documentation

Practical example: Jake completed his carpentry apprenticeship two years ago. His partner is a teacher. Because Jake qualifies as an apprentice graduate within the five-year window, they can both access the discounted rate under the Skilled Start Home Loan.

6. Other Specialist Loans

Keystart also offers the following specialist products:

• Aboriginal Home Loan — for Aboriginal and Torres Strait Islander applicants

• Access Home Loan — for people living with disability or who have a dependent with disability

• Urban Connect Plus — an enhanced urban living product

Visit keystart.com.au/loans for full details on these products.

Keystart Eligibility Requirements (2026)

All Keystart loans share a set of core eligibility criteria:

1. You must be an owner-occupier Keystart does not offer investment loans or interest-only loans. You must intend to live in the home as your principal place of residence for the duration of the loan.

2. You must not own other property You cannot own or part-own any other home or land at the time of settlement. Previous homeowners can apply, as long as they no longer hold property.

3. You must meet income limits Each loan product has a maximum gross income threshold, which varies by region and household size (see the tables above). Your income includes salary, wages, and some Centrelink benefits that Keystart accepts.

4. You must have stable employment or income You need at least six months of stable income or regular employment. Keystart accepts some Centrelink payments as income, but these affect your borrowing capacity.

5. The property must be within WA and within price limits All purchases must be located within Western Australia and fall under the relevant property price cap for your loan type and region.

6. You must have a minimum 2% deposit Your deposit must be the higher of 2% of the purchase price or $2,000. If you are building a new home (not modular), you may be able to use the First Home Owner Grant (FHOG) towards your deposit.

What Types of Property Can You Buy?

With Keystart's Low Deposit Home Loan, you can purchase:

• An established house, unit, apartment, or townhouse

• A newly built home

• A modular (prefabricated) home

• Land and build (construction loan)

You can buy anywhere within Western Australia, giving you full flexibility on location.

How to Apply for a Keystart Home Loan: Step-by-Step

Step 1 — Check If You Qualify (5 Minutes)

Head to keystart.com.au/apply-now/do-you-qualify-for-a-home-loan. Answer a few questions about your income, household size, and property intentions. This pre-qualification tool will tell you whether you likely qualify and give you an indicative purchase price range. It takes around five minutes.

Step 2 — Submit a Formal Application

If you qualify, start a formal application. You'll be assigned a dedicated Keystart home loan specialist who will guide you through the process. You'll need to provide:

• Recent payslips and bank statements

• Evidence of your deposit savings

• Identification documents

• For the Skilled Start loan: qualification certificates, trade cards, or white card evidence

Step 3 — Conditional Approval

Keystart reviews your application against its lending criteria. If approved, you'll receive a conditional approval letter outlining exactly how much you can borrow and any conditions that must be met before formal approval. Keystart strongly recommends obtaining conditional approval before making an offer on a property or placing a deposit on a build.

Step 4 — Find Your Home

With conditional approval in hand, you can start house hunting. Any offer you make should include a "subject to finance" clause and must fall within your conditional approval amount.

Step 5 — Formal Approval and Settlement

Once you have a signed contract, Keystart moves to formal approval. Loan documents are issued for your review and signature take the time to read these carefully, or seek independent legal advice. Settlement is then arranged through your settlement agent, at which point ownership transfers to you.

Step 6 — Move In and Manage Your Loan

After settlement, you can move into your new home. Download the Keystart app to track your loan balance, estimated property value, set up additional repayments, and monitor your readiness to refinance.

Can You Use the First Home Owner Grant (FHOG)?

Yes, if you are a first home buyer building or purchasing a newly built home in WA, you may be eligible for the FHOG. Keystart allows eligible borrowers to use these funds towards their deposit. Note that the FHOG is not available for established home purchases, though you may be eligible for concessional stamp duty in that scenario.

The FHOG is administered by the WA Department of Finance, Office of State Revenue.

Frequently Asked Questions

1- Can I apply if I've owned a home before?

Yes. Previous homeowners are eligible as long as you don't currently own or part-own any other home or land at settlement.

2- Is there a maximum loan term?

Yes. Keystart offers a maximum loan term of 30 years.

3- Can Centrelink payments be used as income?

Keystart accepts some Centrelink benefits as part of your income assessment, though this will affect the amount you can borrow.

4- Can I make extra repayments?

Yes. Additional repayments are allowed, and you have flexibility in repayment frequency.

5- Are there monthly account-keeping fees?

No. Keystart charges $0 in monthly account-keeping fees.

6- When should I refinance?

Keystart is a transitional lender. Once you've built sufficient equity in your home which you can monitor through the Keystart app the company actively encourages you to refinance to a mainstream lender that may offer lower rates and additional features.

Conclusion:

The April 2026 updates to Keystart's product settings make this already-compelling program even more relevant for Western Australians navigating a challenging property market. With purchase price limits up to $860,000, income thresholds raised across the board, the new Skilled Start loan for apprentices and graduates, and the innovative Shared Equity product boosting purchasing power by up to $250,000, Keystart covers a broad range of buyer situations.

If you earn within the income limits, don't currently own property, and are ready to live in your home, Keystart is worth exploring as a genuine, government-backed pathway to ownership.

Ready to take the next step?
Consult with the WA Building Guide for Guidance.