First Start funding boost to help needy homebuyers

The Treasurer and Minister for Housing and Works Troy Buswell has today announced an extra $70million in funding will be made available immediately to keep First Start, the State's shared equity housing assistance scheme, operating until June 30 next year.

Mr Buswell said Cabinet had approved the additional funds which would be directed to assist the most needy applicants under tighter qualifying criteria than had previously applied to the scheme.

In the past under First Start, the State fully financed a first home purchase through its agency Key Start, taking up to 40 per cent equity, with the applicant borrowing and servicing the balance through a Key Start mortgage.

Funded originally with $300million over three years, First Start ran out of money after only 18 months.  Mr Buswell said revised qualifying criteria were being finalised to ensure the extra funds lasted to the end of the financial year but that it went to the most needy applicants, according to income and family size.

He expected to be able to announce the new criteria later in the week, including a lowering of the maximum percentage equity that the State could take.