Cedar Woods has welcomed the decision by Keystart Home Loans to remove a requirement for genuine savings as part of the minimum deposit for a new home.
From Monday 1 October 2018 Keystart will instead use an applicant’s rental and loan repayment history to determine eligibility for its low deposit home loan – giving more West Australians the opportunity to purchase their own home.
Customers will still be required to have the two per cent deposit available at the time of application, however this does not have to be genuine savings and can be made up of the First Homeowners Grant (FHOG) if applicable.
The Keystart home loan is one of the products offered by Cedar Woods Finance, with key components of the loan including no lenders mortgage insurance, no ongoing monthly fees and a low deposit.
Cedar Woods Finance is Cedar Woods’ mortgage broking service, ensuring customers find the right home loan solution and streamlining the home buying and owning process.
The Keystart loan is available for a maximum property purchase price of $480,000 (house and land) in the metropolitan area.
The change comes after 18 months of analysis, in which Keystart identified rental and loan repayment history was a better method of assessment for predicting loan quality.
Keystart is owned by the WA Housing Authority and was established in 1989 to provide low-deposit home loans to West Australians unable to meet the deposit requirements from mainstream lenders.
To discuss the Keystart home loan, or any other home loan options, contact Cedar Woods Finance on 0498 012 773.