More eligible first-homebuyers will get chance to enter the property market with the State Government extending its Keystart scheme by $420.9 million, in a move the Real Estate Institute of Western Australia has welcomed.
The Real Estate Institute of Western Australia (REIWA) has applauded the McGowan Government’s decision to extend the Keystart scheme loan amount by $421 million as a means of improving housing affordability.
REIWA Deputy President Lisa Joyce said the boost to the scheme was a win for Western Australian home buyers and would help more people achieve the great Australian dream of home ownership.
“Although housing affordability has improved in WA in the last couple of years, there is still a significant number of West Australians who struggle to save the 20 per cent deposit required by most lenders to purchase a property,” Ms Joyce told WILLIAMS MEDIA.
“This boost to the scheme will produce another 1,100 mortgages in WA which will see more West Australians able to own their own home.
In order to apply for a Keystart Home Loan, applicants in the Perth Metro area must be earning under $90,000 if single, $115,000 if in a couple or $135,000 if part of a family.
“Due to recent financial changes to the APRA regulations and the Royal Banking Commission, lending criteria will likely tighten in 2019, making it even more difficult to enter the property market,” Ms Joyce said.
Ms Joyce said that while the move is a start, more work needs to be done.
“While we are pleased the McGowan Government has agreed to increase the loan amount of the Keystart scheme, there is still more that can be done.
“The WA market remains a challenging environment for many West Australians and we would like to see the Government broaden the eligibility criteria by increasing the income limit of Keystart so more people can access these loans.”
Credit: The RealEstate Conversation