- Keystart's
new Urban Connect Shared Equity scheme now open
- Up to
1000 shared equity loans available for new apartments and townhouses
- $210
million scheme offers less upfront costs and lower mortgage repayments for
homebuyers
- Delivers
on major election commitment to boost housing supply and help Western
Australians into an affordable home
The State Government has today launched the Urban Connect Shared Equity
scheme, delivering on a key election commitment to help more Western
Australians own their own home while boosting housing supply across the State.
The new initiative, delivered through Keystart and backed by a $210
million investment, will provide 1000 shared equity loans to Western
Australians looking to buy a new apartment or townhouse.
Through Urban Connect Shared Equity, Western Australians can buy a new
apartment or townhouse worth up to $730,000 with the State Government taking an
equity share of up to 35 per cent or $250,000 in the property, and only a 2 per
cent deposit required.
That means homebuyers pay less upfront costs on their deposit, no
lenders mortgage insurance, and lower ongoing mortgage repayments on the
property.
For example, a homebuyer purchasing a new apartment for $700,000 through
traditional finance could require a $140,000 deposit and pay more than $3,380
per month on their mortgage.
Under Keystart Urban Connect Shared Equity, the homebuyer would require
a $9,100 deposit, with monthly mortgage repayment at less than $3,000 - saving
more than $4,500 each year on repayments.
Homeowners then have the option to purchase back the WA Government's
share as they build up equity in the property.
Urban Connect Shared Equity is available for apartments, townhouses,
units or villas which are newly built, off-the-plan or under construction,
anywhere in metropolitan or regional WA.
Income limits for the scheme are in line with Keystart's existing shared
equity income limits - $123,000 for singles or $189,000 for couples.
The shared equity expansion is part of a suite of State Government
initiatives delivered through Keystart to make an affordable home a reality for
more Western Australians, with early registrations now open for the $75 million
Build to Rent Kickstart Fund, new modular loans now available and new graduate
and apprentice loans to launch by the end of the year.
For more information, visit www.keystart.com.au.
Comments attributed to Premier
Roger Cook:
"My government's vision is to ensure every
Western Australian has a home. That's why we've increased land supply for
housing, cut red tape, and continue to grow our construction workforce.
"Now, we are supporting even more Western
Australians into homeownership through Keystart.
"By providing hundreds of loans for first
homebuyers to purchase newly built apartments and townhouses, my government is
delivering on its vision and fulfilling one of its most important election
commitments."
Comments attributed to
Treasurer Rita Saffioti:
"Our government is throwing everything at boosting housing supply and getting
more Western Australians into an affordable home.
"Through Urban Connect Shared Equity, Western Australians can get into a
new apartment or townhouse with lower upfront costs and ongoing mortgage
repayments, providing significant savings for homebuyers.
"The initiatives being delivered by our government through Keystart is
helping more Western Australians into their own home while also driving housing
supply and supporting infill across Perth and regional WA."
Keystart
Urban Connect Shared Equity comparison
NB: indicative
only, based on the current average of the big four banks' standard variable
interest rates (6.07 per cent), Keystart's current interest rate (7.10 per
cent), and the WA Government taking the maximum 35 per cent equity share.
Depending on individual circumstances, applicants may need additional funds to
cover other home ownership costs like transfer duty, loan establishment fees,
settlement fees and other costs.
