Important Keystart Announcement
November 21, 2011 at 11:10 AM
As you all would be aware, Keystart is a State Government owned scheme primarily aimed at assisting first home buyers at the lower income level into essential housing for owner occupancy only. Our objective is to assist West Australians to obtain home ownership when they cannot obtain housing finance through mainstream lending.
Subsequently, the following changes will be made to Keystart’s lending policy effective immediately.
- Maximum LVR (Maximum purchase or package price of $400,000.00) – The maximum LVR on our standard Keystart Home Loan is 98% of which 1% genuine savings is required.
- Maximum LVR above the 26th parallel (Maximum purchase or package price of $500,000.00) – The maximum LVR is 95% (for properties worth $400,001.00 to $500,000.00) of which 1% genuine savings is required.
- Amended Deposit Requirements – The Applicant(s) must be able to evidence a minimum of 1% genuine savings. The monies must be held or accumulated in a savings account (in the applicant/s name only) for a minimum of 3 months. Please note any lump sum deposit in the 3 month period will not be considered genuine savings.
- Balance of First Home Owners Grant (FHOG) Surplus (if applicable) - Effective immediately if there are any surplus funds available from the FHOG grant they are to be applied as a permanent reduction of the loan amount. This is to be applied at the initial assessment of the Loan Application. The surplus applied to the loan amount is not available to be redrawn and applicants must make payments specified in the Offer to Borrow letter issued or to be issued with respect to the loan.
- Rebates, Land Developer & Builder Incentives on Construction Loans - A “rebate” for the purpose of a Keystart construction loan, is an advance of money to the applicant from either the developer or builder. All rebates, up to a maximum amount of $5,000, are to be used to pay any fees and/or duty on the purchase of the land and as such must be included on the relevant settlement statement and the rebate must be made available by the developer or builder at settlement.
Refer to section 184.108.40.206 of the Policy Manual for further details.
- Documents – Originator Lodgement Pack, Policy Manual, Comparison Rate Schedule & Serviceability Calculator - A new version of the Originator Lodgement Pack – November 2011, Keystart Policy Manual, Comparison Rate Schedule and Serviceability Calculator V37.7 will be uploaded and will be available for download from our document library in our Broker Portal System.
Recently, the Reserve Bank has decreased their official cash rate earlier this month by 25 basis points. Subsequently Keystart has decided to decrease their standard variable rates accordingly.
For all applications received after 16/10/09 the interest rate will move from 7.78%% to 7.53% effective 14th November 2011.
For all applications received prior to 16/10/09 the interest rate will move from 7.00% to 6.75% effective 14th November 2011.
Keystart is committed to helping West Australians into home ownership in its capacity as the lending arm of the State Government. These changes will be noted in the Keystart Broker Portal.
Now, this will be the space to watch with regards to the First Home buyer’s grant. If anyone shows the governments cards its these guys
The last time they did this, the grant was increased to $21, 000 2 weeks later!
Managing Director of New Home Building Brokers