Home ownership
More West Australians should be eligible for home ownership. Image – Canva
  • The higher income limits have been extended for another year
  • This should make more West Australians eligible for the scheme
  • Keystart has helped 118,000 Western Australians into home ownership

The West Australian government has signed off on a one year extension to the increased income limits for Keystart home loan scheme, meaning more West Australians should be able to access the program.

The increased income limits came into effect on 1 July 2019, and were due to cease on 30 June this year, but have been extended to 30 June 2022.

The changes increased by $15,000 for singles and $20,000 for families the income limit for those eligible (see table below). The income limits will then revert back to their original levels in a year’s time.

Since December 2020, the WA government has approved $362 million in increases to Keystart’s borrowing limit for 2021-22.

The increase brings Keystart’s total gross borrowing limit to $5.8 billion and will enable Keystart to take on an estimated 2,700 additional loans in the 2021-22 financial year.

Helping home ownership

Last financial year Keystart helped 3,977 eligible households into affordable home ownership, the highest since 2009-10. Eighty per cent of those loans went to first homebuyers.

Around 2,900 households were also able to transition out of Keystart to a traditional lender or repay their loan, an important step in the home ownership journey, and the most since 2015-16.

“Lower and middle income Western Australians can face a serious challenge to get a foot on the property ladder and things like saving for a 20 per cent deposit are a major barrier.”

John Carey, WA Housing Minister

“By extending the increased Keystart income limits for another 12 months, we’re ensuring more Western Australians will continue to have access to affordable home ownership through this home loan scheme.

“The extended higher income limits, along with the previously announced $243 million increased borrowing limit and a further increase of $118 million means Keystart will be able to provide more Western Australians with an avenue to affordable home ownership over the coming year.”

Keystart was established in 1989 and has helped more than 118,000 Western Australians achieve the dream of home ownership.

It means that a prospective home buyer only needs to find a 2% deposit – rather than the traditional 20% – to access a home loan.

In this year’s federal budget, a very similar initiative was introduced. The ‘Family Home Guarantee’ scheme involves the federal government guaranteeing 18% of a home loan for 10,000 single parents – meaning the buyer can purchase a property with just a 2% deposit.

New Income Levels

Region New income limits Property purchase price cap
Metro area $105,000 (Singles)

$130,000 (Couples)

$155,000 (Families)

$480,000
Regional (excluding Kimberley + Pilbara) $125,000 (Singles)

$150,000 (Couples)

$155,000 (Families)

$500,000
Kimberley $135,000 (Singles)

$165,000 (Couples)

$170,000 (Families)

$650,000
Pilbara $165,000 (Singles)

$195,000 (Couples)

$200,000 (Families)

$650,000
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