Keystart is a Western Australian Government lender that helps buyers into a home with as little as a 2% deposit and no Lenders Mortgage Insurance.
It is a brilliant entry point, but its variable rate – around 7.60% in 2026 – is usually higher than mainstream banks, which sit closer to 6.5%. Once you have built enough equity, refinancing from Keystart to a bank can cut your repayments.
As your local Perth broker, we tell you exactly when that moment arrives.
Keystart is designed to get you in the door, not to be your loan forever. Because it takes on more risk with low deposits and no LMI, its rate is higher than a standard bank loan.
The goal is to build equity – through repayments and rising property values – until your loan-to-value ratio drops to around 80%. At that point, mainstream lenders will usually take you on at a sharper rate.
Property values across Perth and the northern suburbs have moved in recent years, so many Keystart borrowers have built more equity than they realise. A fresh valuation is often the trigger that shows you are ready to switch to a bank.
Many WA families stay on Keystart for years after they could have refinanced, quietly overpaying on interest.
A quick equity and rate check tells you whether you are ready to switch – and we do that for you at no cost.
The key number is equity. Once you owe 80% or less of your home’s current value, you can usually refinance to a bank without paying LMI.
Not sure how equity works? Our guide on how much deposit you need for a house in WA explains loan-to-value ratios in plain English.
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After 10 years inside the Big Four banks, I saw how many Perth families missed out on money or borrowed with the wrong lender. The Finance Yogi exists to change that - we compare the whole market and explain every number in plain English.
The saving comes from the rate gap. Moving from around 7.60% to a competitive bank rate near 6.5% can reduce the interest you pay noticeably every month, and far more over the life of the loan.
On a typical Perth mortgage, that difference often adds up to thousands of dollars a year – money that stays in your pocket instead of the lender’s.
Worth checking: we compare your Keystart loan against 40-plus lenders and show your exact saving before you switch. Estimate the difference with our home loan repayment calculator.
Keystart has income limits – $155,000 for singles and $228,000 for couples and families in 2026 – but those limits only apply when you first take out the loan.
Once you are on a Keystart loan, earning more does not force you out. However, a higher income often makes refinancing to a bank easier, because your borrowing capacity improves.
If your situation has changed, it may be the perfect time to move. See the full service on our refinance broker Perth page.
Switching from Keystart works like any refinance. We check your current equity and rate, compare the market, and only proceed when a bank will genuinely save you money.
We then handle the application, valuation and discharge, so the move from Keystart to your new lender is seamless.
We also make sure the new loan suits your plans. If you intend to renovate or invest, we can structure the refinance to release usable equity at the same time as lowering your rate.
Once approved, we coordinate settlement and confirm your new, lower repayments. For the complete picture, read our complete refinancing guide for WA, or explore our finance services.
Book a free, no-obligation chat and we will check your equity and compare 40-plus lenders.
Source: Keystart for current rates and limits, and refinancing guidance from ASIC MoneySmart. Rates and limits change – confirm current figures before you switch.
