New homebuyers to benefit from Keystart loan increases

3/6/04
Keystart home loans for first homebuyers have been significantly increased.
Housing and Works Minister Nick Griffiths announced today an additional $120,000 would be made available for house and land packages, increasing maximum loans to $360,000.
"Loans for land sales have also been raised from $122,500 to $190,000," Mr Griffiths said.
"Major property price increases resulting from the recent property boom had put pressure on the Keystart Scheme.
"Potential applicants from both country and metropolitan areas had voiced concerns that the current limits excluded them from buying properties, other than on fringed areas.
"Perth housing prices have risen to preclude potential first homebuyers in most areas of the northern corridor, and the situation is rapidly being repeated in the southern corridor.
"Responding to this trend by extending borrowing power should break this cycle."
The Minister said the loan limits for the Keystart Scheme in country regions had been based on past metropolitan median prices.
"This had resulted in the unfortunate effect of stopping Keystart lending in some country centres, particularly in the North-West, as house prices in Broome, Kununurra and Karratha were significantly higher," he said.
"However, it is very encouraging to note that country funding has increased from $70million in 2001, to an estimated $174million in 2004 - 2005."
The State Government has injected a record $2.1billion into Keystart loans over the next four years that will result in 4,600 homebuyers being able to access the scheme.
"With Keystart, the First Home Owners grant and the abolition of stamp duty for most first home buyers, the dream of owning your own home has become even more achievable," Mr Griffiths said.
Miniser's office: 9222 8950