- Keystart to improve access to urban infill projects through an expansion of Urban Connect Plus loan product for off-the-plan apartment purchases
- Specially designed to help buyers cover an apartment developer’s deposit if funds are not available upfront
Keystart has introduced a new loan product to further support Western Australians looking to buy off-the-plan apartments through the new Urban Connect Plus product.
The pilot Urban Connect Home Loan was initially launched in 2022 to support more affordable apartment developments to get out off the ground and to assist more Western Australians achieve their home ownership goals.
Keystart’s new Urban Connect Plus is an extension of the Urban Connect Home Loan and will allow approved Urban Connect Home Loan customers to access a loan to support developers’ deposits for off-the-plan apartments, acknowledging that a deposit can be a major barrier for many people.
In order to secure an apartment in a new development prior to construction, buyers need to pay a developer deposit. This deposit is typically a portion of the purchase price, up to 10 per cent and may represent a significant barrier to entry for many potential buyers. Urban Connect Plus addresses this barrier by providing finance to help fund the upfront developer deposit.
The Urban Connect Plus loan is only available with an Urban Connect Home Loan and for off-the-plan apartment purchases. While the apartment is being built the buyer will make payments toward their Urban Connect Plus loan. Once the apartment nears completion and the rest of the purchase price is due to the developer, the buyer will transfer to Keystart’s Urban Connect Home Loan.
The Urban Connect Home Loan helps make medium and high-density living more accessible and supports the Western Australian Government’s infill priority.
In May 2023, the State Government extended the pilot Urban Connect Home Loan product to include one-bedroom dwellings – providing more housing choice for Western Australians looking to purchase new or established apartments.
Income and property purchase limits for the Urban Connect Home Loan are a sole income of $180,000 for singles with a property purchase limit of up to $560,000, and combined income of $200,000 for couples and families with a property purchase limit of up to $650,000.
As stated by Housing Minister John Carey:
“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.
“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.”
