Last checked: October 2026
If you’re renting in Perth and saving a 20% deposit feels like it’ll take forever, Keystart could be your shortcut. It’s one of the most common ways first home buyers in WA get into a brand new home with a small deposit. Here’s how it works, what the current limits are, and how it fits with grants and stamp duty savings when you build.
What is Keystart?
Keystart is the Western Australian Government’s home lender. It exists to help people who can afford home loan repayments but don’t have the big deposit a standard bank wants. Keystart has been helping West Australians into their own homes for more than 35 years.
How much deposit do you need with Keystart?
With a Keystart Low Deposit Home Loan you can buy with a 2% deposit and no lender’s mortgage insurance (LMI). On a $750,000 house and land package, that’s a $15,000 deposit instead of $150,000 for a 20% deposit.
Keystart limits in 2026
To use Keystart, both your household income and the property price need to be under Keystart’s limits:
| Keystart loan | Property price limit | Income limit (singles) | Income limit (couples & families) |
|---|---|---|---|
| Low Deposit Home Loan | $860,000 | $155,000 | $228,000 |
| Shared Ownership Home Loan | $720,000 | $128,000 | $197,000 |
| Urban Connect Shared Equity Home Loan | $800,000 | $128,000 | $197,000 |
Higher income limits apply in the Kimberley and Pilbara. Keystart reviews its limits from time to time, so always check the latest on keystart.com.au.
Do you have to be a first home buyer?
No. Keystart is open to first home buyers and to people who have owned before, as long as you don’t currently own or part-own any other home or land. You can buy anywhere in Western Australia.
Keystart, grants and stamp duty: how it adds up when you build
Keystart works alongside the savings available to first home buyers in WA, which is where building a new home really stacks up:
- First Home Owner Grant: $10,000 towards a new home, for eligible homes valued up to $800,000 in Perth and the south of the state.
- Stamp duty on the land: when you buy land and build under separate contracts, transfer duty is generally charged on the land only. Eligible first home buyers pay no duty on vacant land up to $450,000, with a reduced rate up to $550,000.
- 2% deposit: with Keystart’s Low Deposit Home Loan and no LMI.
For many of our clients, that combination means the upfront cost of building a new home ends up far lower than they expected.
Things to weigh up
- Compare your options. Keystart isn’t the only low deposit option. The Australian Government’s 5% Deposit Scheme has no income caps, so if you earn above Keystart’s limits, or have a bit more saved, it may suit you better. Compare interest rates and fees, not just the deposit.
- Your borrowing power still matters. A low deposit gets you in the door, but Keystart still checks you can comfortably afford the repayments.
- Price limits include the whole package. When building, the land and the build contract together need to sit under the price limit.
How First Homes Perth can help
We work with first home buyers every week who are using Keystart to build. We’ll connect you with finance specialists who know Keystart inside out, help you find a block and design that sit within the limits, and walk you through grants and stamp duty savings. Our house and land packages are built by Home Group, with a 12 month price hold and a 30-year structural guarantee.
Keystart FAQs
Is Keystart only for first home buyers?
No. You can use Keystart if you’ve owned a home before, as long as you don’t currently own or part-own any other home or land.
What is the Keystart income limit in 2026?
For the Low Deposit Home Loan it’s $155,000 for singles and $228,000 for couples and families in Perth and most of WA. Shared ownership loans have lower limits of $128,000 and $197,000.
What is the Keystart property price limit?
$860,000 for the Low Deposit Home Loan, anywhere in WA.
Can I use Keystart for a house and land package?
Yes. Keystart can be used to buy land and build a new home, as long as the total price is within the limit.
Keystart or the 5% Deposit Scheme: which is better?
It depends on your income, savings and the home you want. Keystart needs a smaller deposit (2%) but has income limits. The 5% Deposit Scheme has no income limits. A finance specialist can compare both for your situation.
This guide is general information only and isn’t financial or credit advice. First Homes Perth is not a lender. Eligibility, limits and rates change, so confirm the details with Keystart or a qualified finance professional before you make a decision.