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The state government of Western Australia is rolling out a new low-cost loan option for homebuyers in the state looking to purchase or build apartments in urban areas.

The Urban Connect Home Loan under the state-backed lender Keystart can be used to purchase apartments in medium and high-density development with two or more bedrooms and are close to METRONET precincts and transport hubs in urban locations.

Borrowers who are getting an off-the-plan, new, or established apartment in a complex of two storeys or more can apply for the limited 300 slots under the two-year pilot of the loan.

Income caps of $180,000 for singles and $200,000 for couple and families apply. Purchase limits are also set at $550,000 for single buyers and $650,000 for couples.

Applications for Urban Connect Home Loan will commence on 25 July 2022.

Keystart has already supported more than 121,000 Western Australians break into the housing market since its launch 33 years ago.

Housing Minister John Carey said the new loan option is expected to support the state government’s infill priority announced in the 2022-2023 State Budget and the efforts to boost homeownership among Western Australians.

"This is about creating and delivering more affordable housing options for Western Australians near key public transport locations and amenities,” he said.

Mr Carey said the launch of the new Keystart loan complements the other initiatives the state has to boost urban infill and homeownership.

"We're also delivering range of tax reforms and incentives to boost housing and land supply, encourage urban infill and improving housing affordability across the state.”

Some of these initiatives are the following:

  • 50% land tax concession for new build-to-rent projects commencing July 1, 2023
  • Stamp duty rebate of up to 100% for eligible off-the-plan apartment purchases
  • Planning reforms to include density bonus for private projects which includes five per cent social housing
  • New and updated Keystart loan products helping more Western Australians access housing finance.

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Photo by @nathan_hurst on Unsplash.

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