How it works
Under the scheme, Keystart will commit to purchasing a predetermined number of unsold dwellings within an eligible residential development. This support is intended to help developers satisfy lender pre-sale requirements and secure construction finance earlier.
The purchase price payable by Keystart for the committed dwellings will be at a discounted market value. The minimum discount applied will be:
- 10% in metropolitan areas, and
- 7.5% in regional Western Australia.
Developers will be expected to actively market the committed dwellings during construction in an effort to find an alternative purchaser. If the committed dwellings are on sold during the construction phase, the Keystart contract will be rescinded. However, if the committed dwellings are not on sold by the nominated date, Keystart will purchase those dwellings.
To qualify for the Pre-sale Guarantee Scheme, projects must include a portion of affordable dwellings valued at or below Keystart’s maximum purchase price for low deposit home loans. This value needs to be confirmed by an independent valuer at the time the contract is entered into is entered into.