- WA Government, in partnership with Keystart, have announced the launch of a new loan program targeting apartment buyers in urban areas
- The Urban Connect Home Loan will provide 300 loans over a two year pilot program
- Loan will be available for two-or-more bedroom apartments in urban areas, for buyers who meet income and price criteria
The Western Australian Government has announced the launch of a new Keystart loan product, the Urban Connect Home Loan, aimed at increasing the accessibility of urban areas.
The offering will provide 300 home loans to Western Australians seeking to purchase a two-or-more bedroom apartment in a medium to high-density development in an urban location.
The two-year pilot program will be available for off-the-plan, new and existing apartments in a complex with two or more storeys, as part of an objective to fulfil the State Government’s urban infill goals.
Latest Keystart loan targeting urban apartments
Dubbed the first of its kind in Australia, the Urban Connect Home Loan is designed to incentivise buyers to purchase a home in urban activity centres close to transport hubs.
Under the new program, Western Australian singles who earn up to $180,000 per year are eligible to purchase an apartment for $550,000 or less. Couples or families earning a combined salary of up to $200,000 can purchase an apartment for $650,000 or less.
Keystart CEO Paul Graham said he welcomed the addition of this newest product to Keystart’s loan offerings, adding that he saw it as a “natural extension” of the loan provider’s role in helping Western Australians enter homeownership sooner.
“The Urban Connect pilot is going to give us really valuable insight into the long-term need for a product like this in Western Australia.”
Paul Graham, Keystart CEO
Mr Graham added that saving for a deposit to secure finance is the biggest obstacle to homeownership, particularly when people are having to pay rent simultaneously.
“Keystart’s low deposit home loans help people get their foot on the property ladder sooner and start building equity instead of paying rent, and we’re seeing a growing need for this type of assistance across more demographics and property types,” he concluded.
WA government’s newest housing initiative unveiled
The State Government’s latest loan offering, in partnership with Keystart, is just one of many housing initiatives unveiled to support the government’s infill priority, announced in the 2022-23 budget.
“My Government continues to deliver reforms and initiatives that support more affordable housing to get people into homes while ensuring there are further incentives for urban infill,” said West Australian Premier Mark McGowan.
Planning Minister Rita Saffioti said Keystart’s latest home loan offering is about delivering greater housing diversity in urban infill areas, particularly around key transport corridors.
“We want to see thriving communities close to our key public transport hubs and this new home loan will help drive that.”
Rita Saffioti, WA Planning Minister
“By having higher property price and income limits, we’re ensuring more people can access medium and high-density homes in locations close to public transport, including our METRONET precincts,” said Ms Saffioti.
WA-based builders association and long-time supporters of the Keystart scheme, Master Builders, have since commended the State Government on their newly launched loan program.
“Master Builders congratulates the State Government on delivering their election commitment, and we look forward to working with them in the process of constructing more affordable and social housing options for Western Australians,” said John Gelavis, Executive Director of Master Builders.
Other State Government-supported initiatives to increase housing accessibility in Australia include:
- 50 per cent land tax concession for new build-to-rent projects commencing July 1, 2023;
- stamp duty rebate of up to 100 per cent for eligible off-the-plan apartment purchases;
- planning reforms to include density bonus for private projects which includes five per cent social housing; and
- new and updated Keystart loan products helping more Western Australians access housing finance.