If re-elected, the Labor government will extend a shared equity scheme to include apartments and townhouses as Western Australians prepare for the March state election.
A shared equity scheme aimed at encouraging home ownership will be extended to include apartments and townhouses if the Roger Cook Labor government is re-elected on 8 March.
In the scheme, $210 million will be invested in shared equity to deliver 1,000 new apartments and townhouses and help thousands of Western Australians become homeowners.
The scheme currently offers a limited number of properties.
Keystart will fund up to 35 percent of the purchase price of off-plan or under-construction apartments and townhouses.
A single person’s income limit will be $123,000, and a couple’s or family’s income limit will be $189,000 for the new shared equity products.
The changes we’re proposing if re-elected will put home ownership within reach for thousands of Western Australians, Mr Cook said on Monday.
Shared equity is an important way for the Government to reduce the burden of saving for a new home, and to make monthly mortgage payments more affordable.
As a result of this significant boost, lower-income Western Australians will be able to own their own homes, and more apartment developments will be able to begin sooner.
Housing supply and affordability are critical issues facing our state.”
Keystart offers loans that require just 2% deposits, but interest rates are higher than those offered by banks.
Using the shared equity scheme, people can buy the government’s share in the home until they own 100 percent.
Changes to modular home loans
In addition to providing new powers to support home ownership, the Cook Labor Government has recently amended legislation to make Keystart a Government Trading Enterprise.
Through shared equity schemes, funds can be used to underwrite new developments by purchasing apartments off-the-plan and on-selling them.
It is expected that the scheme will unlock around $600 million worth of new apartment and townhouse projects, both private and public. In addition, WA Labor announced today two new Keystart home loan products to support apprentices and graduates, as well as modular home construction.
As part of the Graduate and Apprentice Home Loan, Keystart will offer loans to graduates and apprentices that include low deposits, free financial coaching and lower upfront mortgage payments, allowing them to get into the housing market and transition to commercial lenders over time.
Currently, most home loan products are designed to finance established homes or traditional construction methods, so the new Modular Home Loan will simplify access to financing for modular homes. To improve customer access, the new loan product will include additional progress payments and low deposits to support builder cash flow.
