Western Australia-based home loan provider Keystart has offered a new home loan product for borrowers wanting to buy off-the-plan apartments.
The Urban Connect Plus product is a development of the Urban Connect Home Loan which was launched as a pilot in 2022 to support affordable apartment projects and to get more West Australians into their own homes.
In May 2023, the State Government extended the pilot Urban Connect Home Loan product to also include one-bedroom dwellings.
The new ‘Plus’ loan will allow approved Urban Connect Home Loan customers to access a loan for deposits for off-the-plan apartments.
A release says the Urban Connect Plus loan is only available with an Urban Connect Home Loan and for off-the-plan apartment purchases.
It says, while the apartment is being built the buyer will make payments on their Urban Connect Plus loan. But once the apartment nears completion and the balance of the purchase price is to be paid, the buyer will transfer to the Urban Connect Home Loan.
Keystart was established in 1989 by the WA State Government and, although it is a private organisation which operates under an independent board, its only shareholder is the WA Housing Authority.
If offers home loans for medium and high-density apartments for owner-occupiers only, with deposits from as low as two per cent, and does not require lender’s mortgage insurance.
Housing Minister John Carey said, “Our government is investing in a range of reforms to stimulate and support apartment construction and urban infill projects, which are an important part of the housing sector to help meet the future housing needs of Western Australia.
“Keystart has supported more than 121,000 Western Australians in achieving the dream of home ownership since its inception 33 years ago,” he added.
“Many homebuyers may not have the funds available upfront to cover the developer’s off-the-plan deposit and this new loan product will provide more housing choice and options to Western Australians.”