WA adopts loan scheme for low-income homebuyers

Font size :
Low-income Western Australian homebuyers are now able to purchase properties by sharing 30% of the capital with the Department of Housing and borrow the balance through state lender KeyStart Home Loans.
 
The shared equity model called Shared Home Ownership features a SharedStart loan option for potential homeowners who are finding difficulty in affording properties due to soaring prices, reports The Property Observer.
 
The scheme also encourages the homebuyer to eventually purchase the department’s share to make the dream of full home ownership come true. This is made possible because the ownership model is not similar to others where the government retains a permanent interest in the property.
 
It was developed to respond to the increased demand for affordable housing as rents were becoming too expensive in Western Australia, said Adrian Warner, acting director of strategy and policy at the Department of Housing.
 
“In the March quarter of 2014, the median rent reached $460 in Perth, while the median house price increased to $540,000, up from $525,000 in the previous quarter,” he said.
 
To date, the scheme has allowed the delivery of home ownership to more than 700 low-income households. This homeownership program, however, is not applicable to the lowest socio-economic groups because it still relies on regular income to pay off the mortgage made. 
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords