Francis Logan

Francis Logan

Minister for Energy; Resources; Industry and Enterprise

    Bond assistance for low-income earners

    21/11/2005 12:00 AM

    The State Government has increased the limits on its rental bond loan scheme in another move aimed at improving the affordability of rental housing for low-income earners.

    Housing and Works Minister Francis Logan said the increases would improve access to affordable housing in the private rental market.

    “The Real Estate Institute of WA has recently revealed that the median private rent was $189 per week as at June 30 - an increase of 13 per cent on the previous 12 months,” Mr Logan said.

    “This increase has been driven largely by competition for rental places, increased property values and increased migration as families from other States seek stronger employment opportunities.

    “The increase in bond loan limits is intended to improve access to the private market for the singles, couples and families currently finding it difficult to enter or move within the market, as a consequence of a reduced number of properties available in their affordable rent range.

    “The bond limits include provision for 40 per cent increases in the North-West and remote areas to reflect the considerably higher rents.

    “This is another example of the Gallop Government’s commitment to improving the quality of services to all Western Australians.

    “The bond loan scheme provides another option for people on Homeswest waiting lists and, importantly, an immediate alternative to people requesting priority assistance.

    “The scheme provides interest-free loans to eligible applicants for the bond deposit required by real estate agents and private landlords. The maximum bond loan is usually four times the weekly rent.”

    Mr Logan said nearly 12,000 bond loans were provided in the last financial year - representing about $5million. More than 3,400 bond loans had already been approved for the current financial year.

    The scheme was established in 1985 to help people on low incomes to gain access to the private rental market. Repayment of a bond loan has been set at a minimum of $15 per fortnight.

    The new bond loan limits:
    Family size
    Previous Bond Loan Amount
    Increased Bond
    Loan Amount
    Two adults or parent/s + one child
    Three adults or parent/s + two children
    Parent/s + three children
    Parent/s + four children

    Minister's office: 9222 8950