❓ Mr. Morton questions the impact of Keystart lending criteria changes on low to moderate income earners' ability to purchase homes. The Minister for Housing responds with data showing increased applications and approvals following the changes, highlighting the program's success in facilitating homeownership and reducing social housing waiting lists.
AnsweredQoN 252Legislative Assembly
QuestionView source ↗
DEPARTMENT OF HOUSING — KEYSTART
252. MR N.W. MORTON to the Minister for Housing:
Can the Minister for Housing update
the house on the impact that last year's changes to Keystart's
lending criteria has had on the ability of low to moderate income Western
Australians to purchase their own home?
252. MR N.W. MORTON to the Minister for Housing:
Can the Minister for Housing update
the house on the impact that last year's changes to Keystart's
lending criteria has had on the ability of low to moderate income Western
Australians to purchase their own home?
AnswerView source ↗
The member, I know, is a strong
supporter of the state government's affordable housing strategy to
deliver 20 000 additional new homes for low to moderate income earners in
Western Australia. A key part of this strategy is to increase opportunities for
affordable home ownership, and Keystart loans form part of our strategy in
providing a low-cost entry home loan for eligible borrowers who may not qualify
for bank loans through normal banks. Why not? Because they may not have a big
enough deposit; they may not have a savings history; they may not be able to
afford mortgage insurance; or they may not be able to afford the application fees.
The Keystart loan strategy has been a very successful program since its
inception in 1989. It has actually helped 50 000 WA householders achieve
homeownership. However, in order for Keystart to provide more loans and
increase the reach of this highly successful program, in September last year
the government increased the income caps for eligibility. The income cap for a
single person in the metropolitan area is now $90 000; for couples, $110 000;
and for families, $130 000. In the regions, the income cap for singles is now
$110 000; and for couples and families, $130 000. Furthermore, recognising the
particular circumstances in both the Kimberley and Pilbara regions, the single
income cap in those areas is now $120 000; and for families and couples, $150 000.
We have also increased the property price cap. In the metropolitan area, the
cap is $450 000; in the regions, $500 000; and, again recognising the special
circumstances in the Kimberley and Pilbara regions, the cap is $700 000 in the
Kimberley and $850 000 in the Pilbara.
What has been the outcome of these
changes? I am pleased to report to the house that these changes had an
immediate impact. To make a comparison with the 12-month period prior to
September 2012, there were 1 550 applications in that time; since September
2012 we have already received 3 609, which is more than double the number of
applications in less than 12 months. In respect of approvals, which is the
outcome we are trying to achieve, prior to September 2012 in the metropolitan
area there were 611 approvals; since that time, we have already had 1 657
approvals in the metropolitan area. In the regions—which will be of
interest to many members—before September 2012 we had 181 approvals;
since then, we have had 489 approvals.
The changes the government has made
to the caps in the Keystart program have created real results and are helping
the government with its strategy to deliver 20 000 additional affordable houses
to low and moderate income earners in Western Australia. Another important
thing to emphasise is that —
The
SPEAKER : Member for West Swan, are you finished?
Mr W.R. MARMION :
One of the important issues here is the transition of people out of social
housing and into their own homes. By transitioning people through Keystart loans
from social housing to their own homes we are lowering the waiting lists and
delivering on our commitment to improve the housing situation.
supporter of the state government's affordable housing strategy to
deliver 20 000 additional new homes for low to moderate income earners in
Western Australia. A key part of this strategy is to increase opportunities for
affordable home ownership, and Keystart loans form part of our strategy in
providing a low-cost entry home loan for eligible borrowers who may not qualify
for bank loans through normal banks. Why not? Because they may not have a big
enough deposit; they may not have a savings history; they may not be able to
afford mortgage insurance; or they may not be able to afford the application fees.
The Keystart loan strategy has been a very successful program since its
inception in 1989. It has actually helped 50 000 WA householders achieve
homeownership. However, in order for Keystart to provide more loans and
increase the reach of this highly successful program, in September last year
the government increased the income caps for eligibility. The income cap for a
single person in the metropolitan area is now $90 000; for couples, $110 000;
and for families, $130 000. In the regions, the income cap for singles is now
$110 000; and for couples and families, $130 000. Furthermore, recognising the
particular circumstances in both the Kimberley and Pilbara regions, the single
income cap in those areas is now $120 000; and for families and couples, $150 000.
We have also increased the property price cap. In the metropolitan area, the
cap is $450 000; in the regions, $500 000; and, again recognising the special
circumstances in the Kimberley and Pilbara regions, the cap is $700 000 in the
Kimberley and $850 000 in the Pilbara.
What has been the outcome of these
changes? I am pleased to report to the house that these changes had an
immediate impact. To make a comparison with the 12-month period prior to
September 2012, there were 1 550 applications in that time; since September
2012 we have already received 3 609, which is more than double the number of
applications in less than 12 months. In respect of approvals, which is the
outcome we are trying to achieve, prior to September 2012 in the metropolitan
area there were 611 approvals; since that time, we have already had 1 657
approvals in the metropolitan area. In the regions—which will be of
interest to many members—before September 2012 we had 181 approvals;
since then, we have had 489 approvals.
The changes the government has made
to the caps in the Keystart program have created real results and are helping
the government with its strategy to deliver 20 000 additional affordable houses
to low and moderate income earners in Western Australia. Another important
thing to emphasise is that —
The
SPEAKER : Member for West Swan, are you finished?
Mr W.R. MARMION :
One of the important issues here is the transition of people out of social
housing and into their own homes. By transitioning people through Keystart loans
from social housing to their own homes we are lowering the waiting lists and
delivering on our commitment to improve the housing situation.
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