13/10/05
The State Government’s low-deposit home lending arm, Keystart, significantly bolstered home affordability in Western Australia by posting a record $784million in approved loans for 2004-05.
Housing and Works Minister Francis Logan said 5,417 households were assisted into home ownership during the year - an increase of 29.5 per cent on 2003-04.
The figures were released in the State Housing Commission’s annual report that was tabled in State Parliament today.
Mr Logan said the number of loans issued by Keystart had increased from 3,424 in 2002-03 ($372million) to 4,183 in 2003-04 ($521million) and 5,417 in 2004-05 - a 58 per cent increase over those three years.
“These figures clearly demonstrate the Gallop Government’s commitment to providing affordable housing,” he said.
“Never before have so many people in WA been assisted into first-time homeownership.”
The Minister said Keystart’s greatest strength was that it helped potential homebuyers who found it hard to save a deposit.
“Keystart focuses on first homebuyers and the affordable housing market, with an estimated 80 per cent of its loans provided to those with minimal deposits,” he said.
“It also continues to play an important role in housing in country areas, with lending increasing from 1,759 loans at $150million in 2003-04 to 2,124 loans at $225million in 2004-05.”
Mr Logan said that since Keystart’s inception in 1989, it had advanced more than $5.2billion in home loans to more than 58,000 low-to-moderate-income families and households.
The Minister said first homebuyers needed a two-percent deposit or $2,000 (whichever was the greater), to be eligible for a Keystart loan to buy a home for $300,000 or less.
Keystart also accepted the $7,000 First Home Owners Grant as a deposit.
Mr Logan said recent increases in home loan limits meant that Keystart could now provide loans of up to $360,000 for house and land packages and $190,000 for land loans.
“There is no need for mortgage insurance, a saving of thousands of dollars,” he said.
“There are also no monthly fees and no minimum income below which potential borrowers become ineligible - the amount borrowers earn determines how much they can borrow.
“In addition, Keystart is committed to a safety-net scheme which helps borrowers who get into trouble with their loan for reasons outside of their control like losing a job, having a long-term illness or losing a partner through death or separation.
“This is because Keystart is a WA Government scheme dedicated to helping people buy and keep their home, rather than a profit-making operation.”
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