The Real Estate Institute of Western Australia (REIWA) has welcomed the State Government’s increase to the Keystart property price and income limits.
REIWA Chief Executive Officer, Cath Hart, said the new limits would be set using the institute’s median house prices and regularly reviewed to reflect market conditions.
Keystart offers loans with as little as 2 per cent deposit and doesn’t charge lender’s mortgage insurance, which makes it easier for people to enter the property market than with a traditional lender.
On a low deposit home loan the previous property price limit was $560,000. This will now rise to $650,000.
Previously the income limit for a single person applying for a low deposit home loan was $105,000, while for couples and families it was $155,000.
These will now rise to $137,000 and $206,000 respectively.
For a shared ownership home loan the property price limit will increase from $412,000 to $535,000, while singles income limit will rise from $70,000 to $113,000.
For couples and families, the income cap will jump from $90,000 to $174,000.
“Keystart provides a valuable service. It offers loans with as little as 2 per cent deposit and doesn’t charge Lender’s Mortgage Insurance, which is of great benefit to Western Australians who find it difficult to get a loan with a traditional lender,” Ms Hart said.
“The loans are subject to price and income limits, which have been unchanged for some time, and the strong property price increases of recent years have resulted in many people being unable to access these loans.
“Lifting the price and income thresholds means the loans will be available to more Western Australians, allowing them to make the move into home ownership.”
Ms Hart said REIWA was proud to have played a role in the review.
“As the peak body for real estate in WA we have unique insights into the WA property market and our data shows what is happening now,” she said.
“Linking the price limits to REIWA’s medians means they will reflect actual market conditions and can move with the market as it changes.
“This will ensure as many people as possible remain eligible for Keystart loans.”
WA Housing Minister John Carey said since its inception in 1989, Keystart had helped more than 122 Western Australians achieve their home ownership goals.
“Our Government is acutely aware of the pressure on the housing market and its impact on many Western Australians, and we continue to do everything we can to boost accommodation options and housing supply,” he said.
“Keystart is unique in the home loan market.
“As a transitional lender, Keystart exists to enable more Western Australians to get into the housing market and provides options to flexibly transition to traditional lenders.”
