- Keystart income limits increased by up to $20,000
- More singles, couples and families now able to buy their own home
- Changes expected to jumpstart Perth's housing construction market
- More than 1,200 new construction jobs - for plumbers, brickies, electricians and other tradies - created in the next 12 months
Home ownership is now within reach for hundreds more West Australians with the Liberal National Government today announcing significant changes to Keystart's lending criteria.
Premier Colin Barnett said Keystart's metropolitan income limits would be increased by $20,000, in a move that is expected to create more than 1,200 new construction jobs in the next 12 months alone while also employing about 20 tradies on every new home built.
"The tight lending policies by the finance sector has left a number of West Australians unable to get a loan because they don't earn enough or, on the other hand, they earned too much to qualify for a Keystart loan," the Premier said.
"These changes to income limits mean these people will no longer stay trapped on the rental roundabout or remain stuck living at home with mum and dad.
"Not only will a relaxing of income thresholds allow more people to enter the property market but 80 per cent of them are likely to choose to build new homes. This will provide an enormous boost to WA's construction industry as for every new home built, around 20 tradies will work on it and three new construction jobs are generated."
Housing Minister Brendon Grylls said Keystart had helped almost 100,000 West Australians into a home of their own since 1989 and continued to play a key role in the Liberal National Government's Affordable Housing Strategy.
"Since 2010, the State Government has delivered more than 20,000 affordable homes and we've set our sights on achieving 30,000 affordable homes for West Australians on low-to-moderate incomes by 2020," Mr Grylls said.
Treasurer Mike Nahan said Keystart's lending criteria was tightened in the 2014-15 Budget to assist in the Government's debt management. However, following the recent success of the State's $1.35 billion partial sale of Keystart's loan book, the lender is now able to broaden its criteria.
"The changes are expected to result in Keystart approving an additional 2,200 loans up until June 2020," Dr Nahan said.
- Under the changes, Keystart's metropolitan income limits have risen by up to $20,000:
- Singles - up to $90,000, previously $70,000
- Couples - up to $115,000, previously $95,000
- Families - up to $135,000, previously $115,000
- Changes also mean property price cap in the Pilbara and Kimberley to rise from $500,000 to $650,000 for Keystart borrowers
- Deposit requirement in the Pilbara and Kimberley also dropped to seven per cent - significantly lower than other major lenders in the North-West
- For more information about the changes, visit http://www.keystart.com.au
Premier's office - 6552 5000
Housing Minister's office - 6552 6100
Treasurer's office - 6552 5700