The State Government has today announced some exciting changes to Keystart, including a new suite of products and initiatives.
These changes will allow us to play a greater role in supporting housing outcomes for Western Australia, including increasing the supply of housing to the market. Building on our existing range of home loan products these changes will allow us to continue working toward our vision: to make the dream of affordable home ownership a reality for more people.
This is an exciting milestone in Keystart's journey, and these changes are reflective of the State Government's belief in our ability to do more for housing in Western Australia.
Today's announcement highlighted the following changes.
Modular construction home loan product
From today, customers can apply for a new low deposit home loan for modular homes. Modular homes are constructed entirely offsite in a specialised factory and delivered to a block of land, which can reduce construction timeframes when compared to traditional homes.
Financing a modular home build typically requires larger upfront payments, which can make this type of housing out of reach and unaffordable. Our modular home loan product requires a low 2% deposit, making the modular housing option more accessible. Keystart's modular home loan covers not just the land, but also construction, transport and connection to foundations.
Keystart is supporting the modular housing industry with up to four progress payments to modular builders throughout the off-site construction process.
Expansion of shared ownership program
We are expanding our low deposit shared ownership program in September for new or under-construction apartments, townhouses or other multi-residential dwellings.
This expansion will support the supply of greater diversity of housing in Western Australia.
The government is committing $210 million to support 1,000 shared ownership home loans. Under this product customers can co-own their home with the State Government contributing up to 35 percent or $250,000 towards the value of a home. This will be beneficial to customers on lower incomes as it reduces monthly repayments.
Graduate and apprentice loans
A new pilot program will launch later this year aimed at supporting graduates and apprentices to purchase a home with low deposit loans.
This product will assist Western Australians who typically cannot afford to save for a home loan deposit at this life stage. The Graduate and Apprentice Home Loan will require a smaller deposit, comes with free financial coaching, and reduced mortgage repayments.
Transition to GTE and new Board of Directors
Keystart is transitioning to a Government Trading Enterprise (GTE) from 1 July, a change that will strengthen our transparency and accountability to the people of Western Australia.
Becoming a GTE changes how we are governed and allows us to play a bigger role in supporting housing outcomes for Western Australians than ever before.
We will welcome a new board of directors to oversee Keystart from 1 July.
Built to Rent Kickstarter Fund
To reflect Keystart's growing role in supporting housing outcomes, the State Government is investing $75 million in a Built to Rent (BTR) Kickstarter Fund, to be managed by Keystart.
This fund will provide low and no-interest construction loans for developments that are exclusively for renters.
Launching by the end of 2025, the fund will seek to enable the delivery of more stable, long-term, and often lower-cost rental options across Western Australia.
More information about this fund, including how a developer can make an application to access it, will be provided later this year.
Contact Clarity Communications - 08 9380 0700
