Could refinancing from a Keystart loan save you money?

Since its inception in 1989, over 118,000 Western Australians became homeowners thanks to Keystart, an initiative of the WA State Government that enables people with low deposits to get a home loan.

Keystart loans have low initial fees, no lenders mortgage insurance and low deposit requirements, making them popular for first home buyers looking to get into the market.

However, these loans often carry a higher interest rate than other home loan products meaning over the long term, these loans can end up costing the homeowner far more than if they are on another loan.

If you currently have a loan through Keystart, it could be worth checking to see if your loan is still in your best interest.

Some examples of times where it may be in your best interests to consider refinancing include: 

• You have made repayments on your loan and now own a higher percentage of your property
• Your circumstances have changed, such as an increase in income
• You have paid off other loans or cancelled credit products (such as credit cards)
• Your savings have increased

There are some factors to consider to determine if refinancing is the right move for you. 

There are costs involved in refinancing your home loan so it may not be the best financial move for everyone. These costs include government charges to switch and any lender application fees. 

When reviewing your situation, your broker will be looking for an opportunity to save you money and put you in a better financial situation.

We have access to over 60 lenders and over 1,000 products to find the right loan for you.

Reach out today for an obligation-free chat about your situation and whether you could save money.