Keystart (WA) and Homestart (SA) are the keys to getting you into your new home faster with minimal savings, low entry costs and no Lenders Mortgage Insurance (LMI) requirement.
They only require a deposit of 2% and they’re a transitional lender, meaning they actually encourage you to refinance with another lender with a lower interest rate as soon as you can.
And in the style of a construction loan, if you choose to go through Keystart/Homestart there are progress payments you’ll be issued as your build progresses. Each state operates slightly differently:
WA
- Slab down (when the foundation is ready to go)
- Plate height (when the brick work is done)
- Roof cover (when the roof over your future head is up)
- Lock up (when the doors, windows, etc., are in and we can effectively ‘lock up’ the house)
- Practical Completion (when the house is fit for occupation)
SA
- Pre-construction
- Slab down
- Wall & roof frame
- Roof cover
- Second fix carpentry
- Practical Completion
Only then, when your home is effectively move-in ready, will you be required to start paying your monthly repayments in full.