Saving a deposit is one of the biggest hurdles for first home buyers. In WA, a Keystart home loan and the Australian Government Help to Buy scheme can help eligible buyers purchase with a deposit from 2%. But they work differently, especially when it comes to the size of your mortgage and the government’s share of your home.
How does a Keystart home loan work?
Keystart’s standard Low Deposit Home Loan offers:
- A deposit from 2%, subject to requirements.
- No Lenders Mortgage Insurance (LMI).
- Access for eligible Australian citizens and permanent residents buying anywhere in WA. You don’t have to be a first home buyer, as long as you don’t currently own property.
- No government equity share. You keep all of your home’s equity.
You still need to be able to afford a mortgage for the rest of the purchase price. Keystart also has separate shared equity products with different rules. Income and property price limits apply, so check Keystart’s current limits for your situation.
How does the Help to Buy scheme work?
Help to Buy is a shared equity scheme for first home buyers and eligible previous homeowners who don’t currently own property.
- Minimum 2% deposit.
- Government contribution of up to 30% for an existing home or up to 40% for a new home.
- No LMI.
- Australian citizens only (permanent residents aren’t eligible).
- Income limits: $103,000 for individuals and $165,000 for couples and single parents.
- WA price caps: $850,000 in Perth and regional centres, and $600,000 in the rest of the state.
The government’s contribution can reduce your mortgage and repayments. In return, it holds a share in your home’s value that must eventually be repaid.
Example: buying a $600,000 existing home
Excluding buying costs:
- Keystart standard home loan: $12,000 deposit + $588,000 mortgage.
- Help to Buy with the maximum 30% contribution: $12,000 deposit + $180,000 government contribution + $408,000 mortgage.
Help to Buy’s maximum contribution isn’t automatic. Your savings and borrowing capacity decide how much support you get, and you must contribute the largest deposit you can reasonably afford.
Is Help to Buy free money?
No. It isn’t a grant.
If the government keeps a 30% share and your home’s value later rises to $800,000, that share would be worth $240,000, not the original $180,000.
You don’t pay interest or rent on the government’s share while you live in the home, but its value moves with your property’s value. Any repayment is based on the property’s value at the time you pay.
Keystart or Help to Buy: which could suit you?
A Keystart home loan may be worth exploring if saving a deposit is your main hurdle and you can afford the mortgage.
The Help to Buy scheme may be worth considering if your savings and borrowing capacity leave a gap, and you’re comfortable sharing your home’s value with the government.
If you’re a citizen or permanent resident with a 5% deposit, the 5% Deposit Scheme is another low deposit option without LMI and without a government equity share.
All of these options have eligibility rules and price caps. Compare the full buying costs, repayments and long-term obligations, not just the deposit.
Talk to us about your options
If you’re looking at government support to buy your first home, get in touch with Cleverly Finance for a free chat about which option fits your situation.
Written by Alice Tran, mortgage broker at Cleverly Finance. Last reviewed 30 September 2026. This comparison covers Keystart’s standard Low Deposit Home Loan.
Sources: Keystart Low Deposit Home Loan; Australian Government Help to Buy Scheme and Help to Buy price caps (Housing Australia).
This article is general information only. It doesn’t take into account your objectives, financial situation or needs. Buying costs are additional, and eligibility and lending criteria apply.
