Keystart Changes Great News for First Home Buyers
Premier Mark McGowan has announced a new initiative to help as many Western Australians as possible achieve home ownership dreams by way of Keystart policy changes. The introduction of a targeted housing stimulus to assist the local housing market and construction sector aims to help potential homebuyers who are finding it difficult to overcome barriers to obtaining finance from conventional lenders.
Keystart has historically been a lender designed to provide finance options to lower income earners, with income ceilings being in place for potential applicants. From July 1, 2019 existing income limits will increase by $15,000 for singles and $20,000 for families giving more people access to loans. The government estimates that these changes will allow an additional 11,000 households access to finance.
At present three quarters of Keystart’s loan approvals are for the construction of new homes. The initiative is hoped to also provide a boost to the construction industry and to therefore generate jobs across the state.
These changes will not be in place indefinitely. The eligible income levels will revert to current levels from January 1, 2020. This means, anyone considering taking advantage of the changes need to be mindful that there is only a six-month window of opportunity.
If you or someone you know has had difficulty obtaining finance in the past there may be a viable option now with the impending Keystart changes. Talk to one of the Blackburne Mortgage Broking team to find out more and if you may be eligible.