❓ Ms. Mettam questions the Premier on the timing of Keystart interest rate reductions, suggesting it was reactive to media pressure and rising defaults. The Premier defends the decision as a result of careful planning, highlighting the benefits for vulnerable homeowners and contrasting it with previous governments.
AnsweredQoN 396Legislative Assembly
QuestionView source ↗
KEYSTART — INTEREST RATE POLICY
396. Ms L. METTAM to the Premier:
I refer to the decision to lower
interest rates for Keystart home loan owners yesterday following a question in
the other place that revealed the number of Keystart customers defaulting on
their loans had more than doubled in the past year.
(1) After 12 rate
rises in the past 13 months, why did it take a front page of The West
Australian and questions from the opposition before the government moved to
help those Keystart customers in mortgage stress?
(2) Why have our
most vulnerable home owners been charged one of the highest rates by a government
entity in the middle of a housing crisis?
396. Ms L. METTAM to the Premier:
I refer to the decision to lower
interest rates for Keystart home loan owners yesterday following a question in
the other place that revealed the number of Keystart customers defaulting on
their loans had more than doubled in the past year.
(1) After 12 rate
rises in the past 13 months, why did it take a front page of The West
Australian and questions from the opposition before the government moved to
help those Keystart customers in mortgage stress?
(2) Why have our
most vulnerable home owners been charged one of the highest rates by a government
entity in the middle of a housing crisis?
AnswerView source ↗
I thank the member for the question.
(1)–(2) Those
on the opposite side of the chamber may not be familiar with the idea of
responsible, accountable and mature government decision-making and it may come
to some surprise to the members opposite that this decision was not made in the
last 24 hours. We did not just get up yesterday and think: here is a tricky
headline; we better make a major government decision about assisting Western Australians
deal with the cost of living. These
decisions are made after careful consideration and consultation with
departments and they do not take place in the length of just one day.
That
stands in sharp contrast to the previous governments that have served in this
place made up of members from that side of the chamber. We make
decisions that are financially responsible to protect the interests of the Western
Australian community and, where we can, make a difference to people's
lives and assist them to deal with the cost
of living. I am very proud of the decision that we made, which was not in
relation to a newspaper headline, but
in relation to our honesty and dedication to making sure that we do two t hings:
we keep our economy strong and we keep the number of jobs in Western Australia
growing and assist those most vulnerable in our community.
We are very proud of the decision
that was announced yesterday, which is about changing Keystart's
interest rate–setting policy. This will be effective from 1 July 2023
and it will support thousands of Western Australian home owners. Keystart is a unique
feature on the national landscape and it is one that other state governments look at with great envy and some admiration.
Taking advantage of what are called transitionary loan arrangements from
an entity like Keystart is a very effective way of allowing people who cannot
amass the deposit they need for a home loan in the normal market for mortgages
to get into home ownership. It is at a slightly higher margin because it is a transitional
arrangement. Our aspiration, and as many thousands of Western Australians have
shown in the past, is that they transition to a normal mortgage once they get themselves established. It is a great way of
helping people get into home ownership and has assisted many thousands
of people make that transition.
On the basis of a household with a 30-year
mortgage of $400 000, the move that we announced yesterday means that these
families will save on average, annually, over $3 000. That is a significant
contribution to the household bottom line.
It is an important step that we are taking in addition to the fact that
households will soon be receiving our cost-of-living rebate on their
energy bills, and that will obviously be another welcome relief for them. When they receive their energy bills in July,
they will receive a $400 bonus and in addition, those with greater
hardship will receive another $423, which will allow them to get even greater
assistance to deal with the cost of living. These are important contributions.
At
the end of the day, nothing is a substitute for someone having a good,
high-value and rewarding job. For those
who are finding it difficult to deal with the cost of living at the moment, the
decision that we announced yesterday
and the decisions that we announced as part of our budget to assist vulnerable Western
Australians will come as a welcome relief.
(1)–(2) Those
on the opposite side of the chamber may not be familiar with the idea of
responsible, accountable and mature government decision-making and it may come
to some surprise to the members opposite that this decision was not made in the
last 24 hours. We did not just get up yesterday and think: here is a tricky
headline; we better make a major government decision about assisting Western Australians
deal with the cost of living. These
decisions are made after careful consideration and consultation with
departments and they do not take place in the length of just one day.
That
stands in sharp contrast to the previous governments that have served in this
place made up of members from that side of the chamber. We make
decisions that are financially responsible to protect the interests of the Western
Australian community and, where we can, make a difference to people's
lives and assist them to deal with the cost
of living. I am very proud of the decision that we made, which was not in
relation to a newspaper headline, but
in relation to our honesty and dedication to making sure that we do two t hings:
we keep our economy strong and we keep the number of jobs in Western Australia
growing and assist those most vulnerable in our community.
We are very proud of the decision
that was announced yesterday, which is about changing Keystart's
interest rate–setting policy. This will be effective from 1 July 2023
and it will support thousands of Western Australian home owners. Keystart is a unique
feature on the national landscape and it is one that other state governments look at with great envy and some admiration.
Taking advantage of what are called transitionary loan arrangements from
an entity like Keystart is a very effective way of allowing people who cannot
amass the deposit they need for a home loan in the normal market for mortgages
to get into home ownership. It is at a slightly higher margin because it is a transitional
arrangement. Our aspiration, and as many thousands of Western Australians have
shown in the past, is that they transition to a normal mortgage once they get themselves established. It is a great way of
helping people get into home ownership and has assisted many thousands
of people make that transition.
On the basis of a household with a 30-year
mortgage of $400 000, the move that we announced yesterday means that these
families will save on average, annually, over $3 000. That is a significant
contribution to the household bottom line.
It is an important step that we are taking in addition to the fact that
households will soon be receiving our cost-of-living rebate on their
energy bills, and that will obviously be another welcome relief for them. When they receive their energy bills in July,
they will receive a $400 bonus and in addition, those with greater
hardship will receive another $423, which will allow them to get even greater
assistance to deal with the cost of living. These are important contributions.
At
the end of the day, nothing is a substitute for someone having a good,
high-value and rewarding job. For those
who are finding it difficult to deal with the cost of living at the moment, the
decision that we announced yesterday
and the decisions that we announced as part of our budget to assist vulnerable Western
Australians will come as a welcome relief.
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