Keystart changes improve access to low-cost loans

As demand grows and affordability continues to decline, it is important that new home buyers understand the options available to support them in their home ownership journey.

Established in 1989 as an initiative of the WA Government, Keystart has helped over 100,000 people into home ownership by lowering the entry barriers faced by so many prospective buyers.

Offering low deposit home loans without the added burden of lenders mortgage insurance, Keystart has been a uniquely West Australian solution to the challenges of housing affordability and rising living costs.

In recent years, there has been a need for Keystart to evolve and look at more innovative approaches to the products and supports available to help more prospective home buyers into home ownership.

The housing landscape in WA has changed, with property prices increasing, housing supply pipelines constricting, and many people finding it increasingly difficult to get a foothold on the property ladder.

That’s why UDIA WA has been supportive of the recent changes to Keystart’s products and operations that have been announced, and subsequently put into action, in the last 12 months.

Expanding housing access where it's needed most

First, and importantly for any potential Keystart customers, income and property price thresholds were increased for the second time in a year in late 2024.

On top of increasing the thresholds, the Government confirmed that property price thresholds will be reviewed regularly against the annualised median house price, to ensure their loan options remain accessible as the property market fluctuates.

UDIA WA had long advocated for a review of these limits, and the indexation against median property prices, to ensure that more West Australians can access Keystart’s products and services.

 If you are looking to access a Keystart Low Deposit Home Loan, the property price limit is $730,000 and the new income limits are $148,000 for singles and $218,000 for couples and families.

If you are considering a Shared Ownership Loan, the property price limit is now $615,000 and the new income limits are $123,000 for singles and $189,000 for couples and families.

Given the median price of a home, according to the Real Estate Institute of Western Australia (REIWA) is now over $790,000, these new limits and ongoing review, are certainly needed.

Supporting diverse and affordable housing supply

For those looking beyond the standard house and land package options, the expansion of the shared ownership program to include apartments, townhouses and other multi-residential dwellings is another welcome move to boost housing diversity and potentially support more medium and high density development across Perth and the regions.

The WA Government has committed $210 million to support 1,000 shared ownership loans for apartments and townhouses either off-the-plan or under construction, with the government taking a 35 per cent equity share or up to $250,000 in the purchased property.  

This focus on diversity also comes through in Keystart’s new support for modular housing. As construction delays and supply chain pressures persist, modular housing has emerged as another avenue to boost housing supply faster.

Financing modular construction has historically been a significant hurdle for buyers.  By offering low deposit loans tailored to modular builds, Keystart is assisting to make this type of housing a genuinely accessible option for more Western Australians.

Helping the next generation step up

In Australia, home ownership remains one of the most effective ways to build long-term financial security, but for many young people that dream feels increasingly out of reach.

That’s why the pilot Graduate and Apprentice Home Loan program, due to launch later this year, could be another important piece of the puzzle. It could also help to attract much needed skilled workers to WA, with the promise of secure housing options.

With lower deposit requirements, reduced mortgage repayments, and financial coaching built in, this initiative recognises that supporting first home buyers isn’t just about dollars, it’s about building financial confidence too.

A broader role for Keystart in housing solutions

These product expansions are complemented by a structural shift that positions Keystart to play a broader and more strategic role in WA’s housing market.

From 1 July, Keystart is transitioning to a Government Trading Enterprise (GTE), bringing with it a new board and strengthened governance arrangements.

This move will enable Keystart to help underwrite new developments, which is a smart way to leverage the private sector to deliver hundreds of new homes.

In that context, the establishment of a $75 million Built to Rent (BTR) Kickstarter Fund, which will be managed by Keystart, is another initiative that will be launched by the end of the year.

While home ownership will always be a cornerstone of housing policy, we also need to support stable, affordable rental options, and by offering low and no-interest construction loans for BTR developments, this fund can help unlock projects that might not otherwise get off the ground, especially those targeted at lower-income or long-term renters.

A vision for housing that’s inclusive and practical

UDIA WA has long championed the role of Keystart as a practical and effective enabler of home ownership.

The recent changes have the potential to modernise Keystart’s offering and potentially set the organisation on a path of greater innovation in the products on offer, as well as more direct impact on the delivery of housing supply to the market.

With housing demand continuing to grow, we must continue to think creatively and act decisively to deliver the homes we need.