❓ Mr. Folkard asks about the impact of increased Keystart income limits on affordable housing and the construction industry. The Minister for Housing responds with data on applications, approvals, and benefits to the housing sector, while also refuting criticisms regarding Keystart's loan book.
AnsweredQoN 889Legislative Assembly
QuestionView source ↗
HOUSING —
KEYSTART — INCOME LIMITS
889. Mr M.J. FOLKARD to the Minister for Housing:
I refer to this government's
commitment to supporting the WA housing industry and creating local
construction jobs through its decision to increase the income limits for
Keystart.
(1) Can the minister update the house how this
targeted housing stimulus is helping more Western Australians get into
affordable housing?
(2) Can the
minister advise the house how these changes can provide a boost to the state's
construction industry?
KEYSTART — INCOME LIMITS
889. Mr M.J. FOLKARD to the Minister for Housing:
I refer to this government's
commitment to supporting the WA housing industry and creating local
construction jobs through its decision to increase the income limits for
Keystart.
(1) Can the minister update the house how this
targeted housing stimulus is helping more Western Australians get into
affordable housing?
(2) Can the
minister advise the house how these changes can provide a boost to the state's
construction industry?
AnswerView source ↗
I thank the member for the question.
(1)–(2) It
is with great pleasure that we announced in July this year that we would be
increasing the income limits that make people eligible for a low-deposit loan
through Keystart—a two per cent deposit. We took the rate for couples
up to $130 000, and $155 000 for families. It is a significant increase. We
also capped that through until 31 December this year to create the pressure
that we felt was required to stimulate some of the much-needed demand in the
housing construction industry.
I thank the member for Perth for launching
the media on the weekend in relation to the Opening Doors TV advertising
campaign. That Keystart TV campaign was launched in order to support that boost
to the income limits and the changes in the nature, and making sure the demand
take-out for the construction industry is continually increasing, or at least
held buoyant.
I am pleased to report that 305
applications in the period since 1 July have been lodged by prospective buyers
who were previously ineligible—they would not have qualified under the
previous income limits. They are genuine applications as a result of this
strategy. Of the 216 applicants pre-approved or approved for finance, 71 per cent
elected to build or purchase a newly built property. That directly equates to
jobs in the construction industry and shows that the McGowan government listens
to industry. It shows that the McGowan government is very, very aware of the
requirements of the housing industry to make sure that we do not end up with a locked
market in which the skills have drifted away from the industry at the time when
demand comes on, as it inevitably does through the normal cycle.
I would also like to report that
Keystart's major broker groups advise that Keystart's share of
their business has increased over the past few months, and leads have also
increased by as much as 25 per cent. It is not just the construction industry;
the whole continuum of the housing industry is benefiting from very much needed
assistance to the construction industry.
I want to take the opportunity to
redress a misconception that was proffered by the member for Bateman in this
house yesterday in suggesting that somehow the loan book of Keystart is in some
sort of stressed situation and that we have to gouge our clients in some way in
order to dig out of it. Nothing could be further from the truth. I just want to
make sure it is really clear that we have lowered the lending rate of Keystart
by 0.55 per cent per annum.
Mr D.C. Nalder interjected.
Mr P.C. TINLEY : That is on
the weighted average cost of borrowing. More than 90 per cent of Keystart
customers are one payment or more in advance of their loans—90 per cent
are ahead on their home loans. We work very closely with those clients to
ensure that we are supporting their needs, particularly if they are in certain
distressed examples.
Mr D.T. Redman : What is new?
Mr P.C. TINLEY : What is new
is 216 new loans. What did the member do in the period he had it? He did not
add one job to the economy!
Mr D.T. Redman interjected.
The SPEAKER : Member for
Warren–Blackwood!
Mr P.C. TINLEY : I would
also like to say, unlike what the member for Bateman has been saying, that that
actually represents a minimum monthly repayment reduction of $118, or $1
400 over the year; not the $5 000 increase that he thought we were gouging out
of them. At a quarter per cent, that would make a $2 million loan, member!
I want to join with federal Liberal
Treasurer Josh Frydenberg in his condemnation of the banks for not passing on
the rates. I want to know where the member for Bateman is on this. Is he just
doing what he always did before he came to
this place and being an apologist for the banks? Is he still fighting in that
corner? Is the member for Bateman an apologist for banks? Is he against
young Western Australians getting their first opportunity to get a roof over
their head? Where does the member sit?
(1)–(2) It
is with great pleasure that we announced in July this year that we would be
increasing the income limits that make people eligible for a low-deposit loan
through Keystart—a two per cent deposit. We took the rate for couples
up to $130 000, and $155 000 for families. It is a significant increase. We
also capped that through until 31 December this year to create the pressure
that we felt was required to stimulate some of the much-needed demand in the
housing construction industry.
I thank the member for Perth for launching
the media on the weekend in relation to the Opening Doors TV advertising
campaign. That Keystart TV campaign was launched in order to support that boost
to the income limits and the changes in the nature, and making sure the demand
take-out for the construction industry is continually increasing, or at least
held buoyant.
I am pleased to report that 305
applications in the period since 1 July have been lodged by prospective buyers
who were previously ineligible—they would not have qualified under the
previous income limits. They are genuine applications as a result of this
strategy. Of the 216 applicants pre-approved or approved for finance, 71 per cent
elected to build or purchase a newly built property. That directly equates to
jobs in the construction industry and shows that the McGowan government listens
to industry. It shows that the McGowan government is very, very aware of the
requirements of the housing industry to make sure that we do not end up with a locked
market in which the skills have drifted away from the industry at the time when
demand comes on, as it inevitably does through the normal cycle.
I would also like to report that
Keystart's major broker groups advise that Keystart's share of
their business has increased over the past few months, and leads have also
increased by as much as 25 per cent. It is not just the construction industry;
the whole continuum of the housing industry is benefiting from very much needed
assistance to the construction industry.
I want to take the opportunity to
redress a misconception that was proffered by the member for Bateman in this
house yesterday in suggesting that somehow the loan book of Keystart is in some
sort of stressed situation and that we have to gouge our clients in some way in
order to dig out of it. Nothing could be further from the truth. I just want to
make sure it is really clear that we have lowered the lending rate of Keystart
by 0.55 per cent per annum.
Mr D.C. Nalder interjected.
Mr P.C. TINLEY : That is on
the weighted average cost of borrowing. More than 90 per cent of Keystart
customers are one payment or more in advance of their loans—90 per cent
are ahead on their home loans. We work very closely with those clients to
ensure that we are supporting their needs, particularly if they are in certain
distressed examples.
Mr D.T. Redman : What is new?
Mr P.C. TINLEY : What is new
is 216 new loans. What did the member do in the period he had it? He did not
add one job to the economy!
Mr D.T. Redman interjected.
The SPEAKER : Member for
Warren–Blackwood!
Mr P.C. TINLEY : I would
also like to say, unlike what the member for Bateman has been saying, that that
actually represents a minimum monthly repayment reduction of $118, or $1
400 over the year; not the $5 000 increase that he thought we were gouging out
of them. At a quarter per cent, that would make a $2 million loan, member!
I want to join with federal Liberal
Treasurer Josh Frydenberg in his condemnation of the banks for not passing on
the rates. I want to know where the member for Bateman is on this. Is he just
doing what he always did before he came to
this place and being an apologist for the banks? Is he still fighting in that
corner? Is the member for Bateman an apologist for banks? Is he against
young Western Australians getting their first opportunity to get a roof over
their head? Where does the member sit?
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