❓ Dr. Steve Thomas questions the Minister for Housing on Keystart shared ownership loans regarding applications, approvals, value, defaults, and mortgagee possessions from 2020-2023. The Minister provides data and context, highlighting Keystart's role and support services.
AnsweredQoN 1360Legislative Council
QuestionView source ↗
KEYSTART
1360. Hon Dr STEVE THOMAS to the minister representing the
Minister for Housing:
I
refer to the Keystart shared ownership home scheme and each of the financial
years 2020–21, 2021–22 and 2022–23.
(1) How many
Keystart loans were applied for?
(2) How many
Keystart loans were approved?
(3) What is the
value of the Keystart loans granted?
(4) How many
Keystart loans were defaulted on?
(5) How many
Keystart loans were deemed mortgagee in possession?
1360. Hon Dr STEVE THOMAS to the minister representing the
Minister for Housing:
I
refer to the Keystart shared ownership home scheme and each of the financial
years 2020–21, 2021–22 and 2022–23.
(1) How many
Keystart loans were applied for?
(2) How many
Keystart loans were approved?
(3) What is the
value of the Keystart loans granted?
(4) How many
Keystart loans were defaulted on?
(5) How many
Keystart loans were deemed mortgagee in possession?
AnswerView source ↗
I thank the honourable member for
some notice of the question. The following response has been provided by the
Minister for Housing.
Keystart is a transitional lender
that provides low-deposit home loans to support Western Australians to own
their homes sooner. The shared ownership loan supports customers with the
purchase price of the property, with the Housing
Authority helping to fund up to 30 per cent of the purchase price of the home.
Keystart provides a range of support
services for customers who are experiencing hardship, including free tools,
guides, coaching and counselling , and individual case management to
support customers with their specific circumstances.
As the rest of the response is in
tabular form, I seek leave to incorporate it into Hansard .
[Leave granted for the following
material to be incorporated.]
(1)–(2)
In addition to Keystart, clients may be eligible to access the Federal
Government's First Home Guarantee which supports buyers to purchase a home
with as little as a 5% deposit without paying Lenders Mortgage Insurance. The
recently announced Federal shared equity scheme will also provide another
avenue for purchasers to access financial support with a home loan.
Financial
Year
Keystart
shared equity loan applications
Keystart
shared equity loan approvals
2020–21
172
102
2021–22
138
101
2022–23
113
90
(3) As a transitional
lender, Keystart's role is to assist more Western Australians into
their own home sooner and then support them to refinance when they are able to do so. Over the last two years, 12,000
customers have successfully transitioned to a traditional lender.
Financial
Year
Value
of Keystart shared equity loans granted
FY
2020–21
$20,653,900
FY
2021–22
$20,129,200
FY
2022–23
$17,762,640
(4) Due to an unprecedented series of interest rate
rises, all lenders around the country are experiencing an increase in arrears.
Keystart is required to comply with the terms of the National Credit Code in
relation to customers who are experiencing financial difficulty.
Additionally, Keystart discusses a range of options,
tailored for each customer's unique situation and may include temporary
reduction in repayments or extending the
loan term.
Keystart offers a range of
support services for customers experiencing hardship including free financial
tools and guides, financial coaching services, free counselling services
provided through Relationships Australia, as well as a hardship policy to give
time for customers to adjust their finances and get back on track with payments
and individual case management for customers who experience arrears.
Date
Number
of Keystart shared equity loans in default*
30
June 2021
60
30
June 2022
62
30
June 2023
149
*90
days or more in arrears
(5) Keystart
maintains a dedicated team to work with individual customers on a case by case
basis before becoming mortgagee in possession. Where a mortgagee in possession
is unavoidable, Keystart maintains communication with the customer throughout
the process of bringing a property to market to ensure that any potential
surplus is maximised.
Financial
Year
Keystart
shared equity loans deemed mortgagee in possession
2020–21
17
2021–22
8
2022–23
8
some notice of the question. The following response has been provided by the
Minister for Housing.
Keystart is a transitional lender
that provides low-deposit home loans to support Western Australians to own
their homes sooner. The shared ownership loan supports customers with the
purchase price of the property, with the Housing
Authority helping to fund up to 30 per cent of the purchase price of the home.
Keystart provides a range of support
services for customers who are experiencing hardship, including free tools,
guides, coaching and counselling , and individual case management to
support customers with their specific circumstances.
As the rest of the response is in
tabular form, I seek leave to incorporate it into Hansard .
[Leave granted for the following
material to be incorporated.]
(1)–(2)
In addition to Keystart, clients may be eligible to access the Federal
Government's First Home Guarantee which supports buyers to purchase a home
with as little as a 5% deposit without paying Lenders Mortgage Insurance. The
recently announced Federal shared equity scheme will also provide another
avenue for purchasers to access financial support with a home loan.
Financial
Year
Keystart
shared equity loan applications
Keystart
shared equity loan approvals
2020–21
172
102
2021–22
138
101
2022–23
113
90
(3) As a transitional
lender, Keystart's role is to assist more Western Australians into
their own home sooner and then support them to refinance when they are able to do so. Over the last two years, 12,000
customers have successfully transitioned to a traditional lender.
Financial
Year
Value
of Keystart shared equity loans granted
FY
2020–21
$20,653,900
FY
2021–22
$20,129,200
FY
2022–23
$17,762,640
(4) Due to an unprecedented series of interest rate
rises, all lenders around the country are experiencing an increase in arrears.
Keystart is required to comply with the terms of the National Credit Code in
relation to customers who are experiencing financial difficulty.
Additionally, Keystart discusses a range of options,
tailored for each customer's unique situation and may include temporary
reduction in repayments or extending the
loan term.
Keystart offers a range of
support services for customers experiencing hardship including free financial
tools and guides, financial coaching services, free counselling services
provided through Relationships Australia, as well as a hardship policy to give
time for customers to adjust their finances and get back on track with payments
and individual case management for customers who experience arrears.
Date
Number
of Keystart shared equity loans in default*
30
June 2021
60
30
June 2022
62
30
June 2023
149
*90
days or more in arrears
(5) Keystart
maintains a dedicated team to work with individual customers on a case by case
basis before becoming mortgagee in possession. Where a mortgagee in possession
is unavoidable, Keystart maintains communication with the customer throughout
the process of bringing a property to market to ensure that any potential
surplus is maximised.
Financial
Year
Keystart
shared equity loans deemed mortgagee in possession
2020–21
17
2021–22
8
2022–23
8
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