Buying your first home in 2026? Understanding how Keystart works

For many first home buyers, the challenge isn’t just finding the right home. It’s saving enough to get started.

When you’re paying rent, bills and everyday expenses, a 20 per cent deposit can feel out of reach.

For an $800,000 home, that would be $160,000. But what if there was a way to get into the market with as little as 2 per cent?

That’s where Keystart may help. On the same property, a 2 per cent deposit would be $16,000.

It offers low deposit home loans designed to help eligible Western Australians get into a home sooner, particularly if they can afford repayments but don’t have a large deposit saved.

It’s important to understand this isn’t a grant. It’s a home loan. This means you still borrow money, make repayments and need to meet the lender’s requirements.

How does it work?

The Low Deposit Home Loan has lower entry costs than many traditional home loans.

It offers a deposit from as low as 2 per cent and no Lenders Mortgage Insurance (LMI).

This can make a big difference when you’re trying to save while also paying rent and other costs.

However, a smaller deposit doesn’t mean the loan is automatically approved. You still need to meet the eligibility rules and show you can afford the repayments.

There are also income limits and property price limits, which help determine whether you’re eligible and how much you may be able to borrow.

At the time of writing, the property price limit for the Low Deposit Home Loan is $860,000 across WA. Income limits are $155,000 for singles and $228,000 for couples or families, with higher income limits applying in the Kimberley and Pilbara.

How is it different from the 5% Deposit Scheme?

Both options can help eligible buyers purchase with a smaller deposit, but they work differently.

With the Australian Government 5% Deposit Scheme, you apply through a participating lender and the Australian Government provides a guarantee to the lender.

With Keystart, you borrow directly through Keystart. They are the lender.

In simple terms, the 5% Deposit Scheme is support attached to a loan from a participating lender. Keystart is the loan provider itself.

Who can use it?

This option is available to eligible buyers in WA.

To apply, you need to meet the eligibility rules, including:

being at least 18 years old

being an Australian citizen or permanent resident

living in WA and buying or building in WA

planning to live in the home as your main place of residence

not buying an investment property

meeting the income limits

buying a home within the property price limit

being able to show you can afford the loan repayments.

It’s also not just for first home buyers. Subsequent home buyers may be able to apply, as long as they don’t currently own or part-own another home or land.

What types of homes can you buy?

The Low Deposit Home Loan can be used to buy an established property or build a new home. This can include a house, townhouse, apartment or unit.

The current property price limit for low deposit loans is up to $860,000 across the state.

These limits are regularly reviewed against REIWA median house price data, which helps them stay up to date as market conditions change.

Buyers should check the current limits and eligibility requirements before making an offer.

What else should first home buyers know?

A low deposit home loan can help reduce the amount you need to save upfront, but you still need to plan carefully.

Before applying, check:

whether you meet the eligibility rules

whether your income is within the income limits

whether the property is within the purchase price limit

how much deposit you need

whether you can afford the repayments

what other upfront costs you need to pay, such as settlement, conveyancing, inspections, insurance, rates and moving costs

whether you may also be eligible for other support, such as WA’s first home buyer stamp duty concessions or the First Home Owner Grant.

If you’re eligible for the First Home Owner Grant and are building or buying a new home, you may be able to use it towards your deposit.

Is it the right option?

This pathway may be helpful if you can afford repayments but are finding it hard to save a large deposit.

However, it’s still a home loan. You’ll need to make repayments, manage other costs and understand the loan conditions.

Some buyers use it as a stepping stone into home ownership, then refinance with another lender later when they’re ready.

Before applying, check the current requirements, use the available online tools and consider getting independent financial advice so you understand what applies to your situation.