❓ Hon Steve Martin asks about Keystart loan numbers, values, and arrears at specific dates. The Minister provides figures and explains Keystart's role and support for customers, noting challenges in presenting arrears as percentages due to portfolio changes.
AnsweredQoN 624Legislative Council
QuestionView source ↗
KEYSTART — LOANS
624. Hon STEVE MARTIN to the minister representing the
Minister for Housing:
I refer to the Keystart loans
program.
(1) What was the total number of
Keystart loans at —
(a) 30 June 2020;
(b) 30 June 2021;
(c) 30 June 2022; and
(d) 30 April 2023?
(2) What was the combined value of
Keystart loans at each of the dates (a)–(d)?
(3) What percentage of total
Keystart loans were 30 or more days in arrears for each of the dates (a)–(d)?
(4) What percentage of total
Keystart loans were 90 or more days in arrears for each of the dates (a)–(d)?
624. Hon STEVE MARTIN to the minister representing the
Minister for Housing:
I refer to the Keystart loans
program.
(1) What was the total number of
Keystart loans at —
(a) 30 June 2020;
(b) 30 June 2021;
(c) 30 June 2022; and
(d) 30 April 2023?
(2) What was the combined value of
Keystart loans at each of the dates (a)–(d)?
(3) What percentage of total
Keystart loans were 30 or more days in arrears for each of the dates (a)–(d)?
(4) What percentage of total
Keystart loans were 90 or more days in arrears for each of the dates (a)–(d)?
AnswerView source ↗
I
thank the member for some notice of the question. The following response has
been provided by the Minister for Housing.
Keystart has supported more than 120
000 Western Australians achieve their home ownership goals since it was
established in 1989. All lenders in the market are currently experiencing an
increase in arrears following an unprecedented 12 interest rate rises over the
past year. As a transitional lender, Keystart exists to enable more Western Australians
to get into the housing market and provides options to flexibly transition out
of Keystart or make other arrangements. Some 12 000 customers have successfully
transitioned to a commercial lender in the last
two years, demonstrating the success of the Keystart transitional model.
Keystart advises that this means that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator, or loan
portfolio, moves in line with the market. Additionally, mortgagee in possession
rates are currently at near historical lows.
The detailed answer to questions (1)–(4)
are in tabular form and I seek leave to have the response incorporated into Hansard .
[Leave granted for the following
material to be incorporated.]
(1)–(2)
Keystart has a dedicated team of specialists working with customers who are
experiencing financial difficulty on a one-to-one basis. There are many options
available to assist customers to get back on track including financial
education, free counselling through Relationships Australia, and financial
coaching in partnership with Anglicare and the Financial Wellbeing Collective.
June
30, 2020
There
were 16,795 loans in this period to a total value of $4.93b
June
30 2021
There
were 18,290 loans in this period to a total value of $5.24b.
June
30 2022:
There
were 15,993 loans in this period to a total value of $4.02b.
April
30 2023:
There
were 12,092 loans in this period to a total value of $2.92b
(3) Keystart advises that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator (loan portfolio) moves in line with the market.
Total numbers have been provided as they give the most accurate indication of
trends.
The significant decline in
arrears between 30 days and 90 days is reflective of the successful support and
management processes in place to support mortgagees.
June
30, 2020
216
loans were 30 days or more in arrears.
June
30, 2021
515 loans
were 30 days or more in arrears.
June
30, 2022
392
loans were 30 days or more in arrears.
April
30, 2023
892
loans were 30 days or more in arrears.
(4) Keystart advises that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator (loan portfolio) moves in line with the market.
Total numbers have been provided as they give the most accurate indication of
trends.
The significant decline in
arrears between 30 days and 90 days is reflective of the successful support and
management processes in place to support mortgagees.
June
30, 2020
112
loans were 90 days or more in arrears.
June
30, 2021
217
loans were 90 days or more in arrears.
June
30, 2022
193
of loans were 90 days or more in arrears.
April
30, 2023
499
loans were 90 days or more in arrears.
thank the member for some notice of the question. The following response has
been provided by the Minister for Housing.
Keystart has supported more than 120
000 Western Australians achieve their home ownership goals since it was
established in 1989. All lenders in the market are currently experiencing an
increase in arrears following an unprecedented 12 interest rate rises over the
past year. As a transitional lender, Keystart exists to enable more Western Australians
to get into the housing market and provides options to flexibly transition out
of Keystart or make other arrangements. Some 12 000 customers have successfully
transitioned to a commercial lender in the last
two years, demonstrating the success of the Keystart transitional model.
Keystart advises that this means that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator, or loan
portfolio, moves in line with the market. Additionally, mortgagee in possession
rates are currently at near historical lows.
The detailed answer to questions (1)–(4)
are in tabular form and I seek leave to have the response incorporated into Hansard .
[Leave granted for the following
material to be incorporated.]
(1)–(2)
Keystart has a dedicated team of specialists working with customers who are
experiencing financial difficulty on a one-to-one basis. There are many options
available to assist customers to get back on track including financial
education, free counselling through Relationships Australia, and financial
coaching in partnership with Anglicare and the Financial Wellbeing Collective.
June
30, 2020
There
were 16,795 loans in this period to a total value of $4.93b
June
30 2021
There
were 18,290 loans in this period to a total value of $5.24b.
June
30 2022:
There
were 15,993 loans in this period to a total value of $4.02b.
April
30 2023:
There
were 12,092 loans in this period to a total value of $2.92b
(3) Keystart advises that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator (loan portfolio) moves in line with the market.
Total numbers have been provided as they give the most accurate indication of
trends.
The significant decline in
arrears between 30 days and 90 days is reflective of the successful support and
management processes in place to support mortgagees.
June
30, 2020
216
loans were 30 days or more in arrears.
June
30, 2021
515 loans
were 30 days or more in arrears.
June
30, 2022
392
loans were 30 days or more in arrears.
April
30, 2023
892
loans were 30 days or more in arrears.
(4) Keystart advises that presenting arrears on a year-on-year
basis as a percentage does not accurately reflect that the denominator (loan portfolio) moves in line with the market.
Total numbers have been provided as they give the most accurate indication of
trends.
The significant decline in
arrears between 30 days and 90 days is reflective of the successful support and
management processes in place to support mortgagees.
June
30, 2020
112
loans were 90 days or more in arrears.
June
30, 2021
217
loans were 90 days or more in arrears.
June
30, 2022
193
of loans were 90 days or more in arrears.
April
30, 2023
499
loans were 90 days or more in arrears.
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