Keystart a $3 billion success story

5/3/00
Government-backed home loan scheme Keystart has passed the $3 billion mark in loans since its inception more than a decade ago.
Housing Minister Dr Kim Hames said Keystart, which assists low to moderate income earners buy their own homes, had now helped more than 35,000 households.
"When Keystart was launched in 1989, interest rates at banks and other lending institutions were high," Dr Hames said.
"While there has been a significant and sustained drop in interest rates since then, the demand for low deposit, no-fee loans has continued.
"Many first home buyers have been able to make that big step into their own homes through Keystart, where deposits start as low as $2000, or two per cent of the purchase price of the house.
"The scheme includes eligibility criteria designed to target these loans to low to moderate income earners and a ceiling on the price of the home purchased.
"Many first home buyers have found that Keystart is an attractive way of getting their first home.
"Currently there are in excess of 19,000 active loans. This indicates that many people have moved on to other properties or have converted their loans to improve their original purchase.
"Keystart has proved to be one the best managed Government-supported home finance schemes in the country.
"It also provides a safety net to assist borrowers who get into difficulties, giving them a far greater degree of flexibility should their circumstances change.
"In conjunction with New Living, which is refurbishing public housing for sale to tenants or members of the public, people are being given an opportunity they may never have thought possible - the chance to buy their own home."
Dr Hames said that Keystart operated across Western Australia.
"In addition to helping people into their own homes, Keystart makes a significant contribution to the building industry and the State's economy," he said.
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