Keystart @ 6.60%
$3,725/mo
+$0 LMI. Pays rate premium vs HGS.
Keystart vs mainstream: the WA government's 98% LVR no-LMI pathway, compared
Keystart is Western Australia's government-owned low-deposit lender — 98% LVR without LMI, 6.60% rate, WA-only. This piece compares Keystart head-to-head with the three alternative 98% LVR pathways a Perth FHB would typically consider: the Home Guarantee Scheme via a mainstream lender, Hume Bank's non-Scheme 98% product, and Bankwest's 98% HGS at mainstream rates.
Richard Esteb, Licensed Broker (Credit Rep #574071) · Published 20 April 2026 · Live panel data
Head-to-Head · 98% LVR Pathways for a WA FHB
Four routes to 98% LVR in Perth in April 2026
Rate, LMI treatment, eligibility, turnaround, fees. Keystart highlighted. All four assume a WA first home buyer purchasing owner-occupier, 2% cash deposit.
| Pathway | Rate | LMI | Eligibility | Turnaround | App fee |
|---|---|---|---|---|---|
| HGS via Bankwest / Big 4 | 5.89% | $0 waived | HGS quota, income/price caps | 7–9 days | $0 |
| Keystart (WA gov) | 6.60% | $0 not required | WA res, WA property, caps | ~23 days | $600 |
| Hume Bank non-Scheme 98% | 5.74% | ~$27k paid | FHB, standard credit | ~15 days | $199 |
| Bankwest at 95% + LMI | 5.85% | ~$15k @ 95% | Standard credit, 5%+ deposit | 6–8 days | $0 |
How to read this: HGS wins cleanly when the quota is available and the borrower meets caps — cheapest rate, no LMI, fast turnaround. Keystart wins when HGS is closed or caps are exceeded. Hume's non-Scheme 98% wins on rate but requires paying LMI outright. Bankwest 95% LVR + LMI is the fallback for 5%+ deposit borrowers who don't want the Keystart rate premium.
Worked example: $580k Perth FHB purchase, 2% deposit
HGS @ 5.89%
$3,448/mo
+$0 LMI saved. Lowest total cost.
Hume 98% @ 5.74%
$3,558/mo
LMI capitalised +$27k. Higher total loan.
Bankwest 95% + LMI
$3,594/mo
Requires 5% deposit (not 2%). Different eligibility tier.
The ranking on 5-year total cost of ownership: HGS wins (if allocated) > Bankwest 95%+LMI (if 5% deposit available) > Hume non-Scheme 98% > Keystart. But Keystart wins outright when HGS is unavailable (quota closed, income exceeds caps, property above price cap) AND the borrower has less than 5% deposit — which describes a significant share of WA FHB files each quarter.
When Keystart is the right answer in WA
The decision tree isn't rate-shopping — it's eligibility-matching.
Submit to Keystart when the file meets all of these
- WA resident buying WA property. Keystart is statutorily WA-only.
- Less than 5% deposit available. If the borrower has 5%+, Bankwest or Big 4 at 95% LVR + LMI typically win on total cost.
- HGS not available to this file. Quota closed, income exceeds HGS thresholds (~$125k single / $200k couple), or property price exceeds HGS WA cap.
- Income and property price within Keystart's WA caps. Indexed annually — verify at application.
- Planning to hold the property 2+ years. Short-hold files don't amortise the rate premium over the LMI saving.
- Borrower is comfortable with ~23-day turnaround. Not a fast-settlement pathway.
Route elsewhere when
- HGS quota is open and borrower qualifies. HGS is strictly better — cheaper rate, same LMI outcome.
- 5%+ deposit + standard income profile. Bankwest or a Big 4 at 95% LVR + LMI is usually cheaper on 5-year total cost.
- Interstate borrower or interstate property. Keystart is WA-only. SA equivalent is HomeStart. NSW/VIC equivalent is Hume Bank's non-Scheme 98%.
- Investment property. Keystart is owner-occupier only.
- Self-employed <2 years. Keystart requires full-doc income verification.
Keystart — April 2026 Snapshot
Live data from our panel of 105 lenders · refreshed monthly
Max OO LVR
98%
No LMI required
LMI
$0
Gov-backing replaces
Cheapest OO
6.60%
Rate premium vs mainstream
Assessment
8.00%
Lowest on panel
DTI Cap
7.0x
Big-4 equivalent
Min deposit
2%
Genuine savings required
Max Inv LVR
N/A
OO only policy
Turnaround
~23 days
Government process
App fee
$600
Mid-pack
Annual fee
$0
No ongoing package fee
Eligibility
WA only
Income & price caps
Products
6
Narrow shelf
Does Keystart fit your WA FHB file, or would HGS or Bankwest win?
We'll run the four-way comparison (HGS, Keystart, Hume 98% non-Scheme, Bankwest 95%) for your specific deposit, income and property profile. Quick run-through, no signup.
Run the WA comparisonIs Keystart a real bank?
Keystart is a WA state-government-owned home lender, not a bank. It is regulated under the relevant Australian Credit Licence framework. Deposits are not taken — Keystart only provides home loans. This is a lending-only government entity, not a full-service bank.
Who can use Keystart?
WA residents purchasing a principal place of residence in WA, meeting income and property-price caps. Eligibility verified at application. Shared-equity and shared-ownership pathways also available for lower-income households.
What is Keystart's cheapest rate?
6.60% variable on the cheapest tier in April 2026. Rate premium of approximately 0.90% above mainstream non-Big-4 pricing — the cost of the 98% LVR no-LMI structure.
Can Keystart customers use offset accounts?
Yes, on qualifying variable-rate products.
How fast is Keystart approval?
Approximately 23 business days submission-to-unconditional. Government-process timelines; slower than mainstream.
Is HGS better than Keystart?
For HGS-eligible WA borrowers, yes — HGS offers cheaper rate at mainstream lenders with LMI still waived. Keystart is the fallback when HGS quota is closed, income exceeds HGS threshold, property exceeds HGS cap, or timeline doesn't work for the next quarterly HGS allocation.
Can I refinance out of Keystart later?
Yes. Borrowers commonly refinance to a mainstream lender once their equity reaches 20% (around year 5-7 on a typical P&I amortisation plus capital growth), capturing the lower mainstream rate at that point. Keystart is designed as the entry pathway, not necessarily the long-term lender.
Does Keystart offer investment property loans?
No. Owner-occupier principal place of residence only. For WA investment at high LVR use MyState Bank, Newcastle Permanent or ANZ.
Richard Esteb
Licensed Mortgage Broker & Founder
ASIC Credit Rep #574071 · ACN 681 636 056
I route Keystart for WA FHBs who can't access HGS and have less than 5% deposit. For anyone with 5%+ or HGS eligibility, there's a cheaper pathway — the LMI saving matters less than the rate premium over a 5-year hold. Refreshed 23 February 2026.