The recent adjustments to Keystart’s property price and income limits have been positively received by the property market, with REIWA CEO Cath Hart highlighting the significant impact these changes will have on affordable home ownership in Western Australia. The new limits will now be aligned with REIWA’s median house prices and will undergo regular reviews to stay in sync with market trends.
“Keystart is a crucial resource for many,” Ms. Hart remarked. “By offering loans with just a 2% deposit and no Lender’s Mortgage Insurance, it significantly eases the path to homeownership for Western Australians who might struggle with traditional lenders.”
Previously, the static price and income limits meant that many potential homeowners were excluded, particularly with the surge in property prices over recent years. This exclusion created a barrier for many aspiring homeowners who found it increasingly difficult to enter the market as prices soared. The updated thresholds aim to rectify this issue, broadening the accessibility of these loans and opening the door for more Western Australians to achieve their homeownership dreams.
“Increasing the price and income caps will enable more Western Australians to transition into home ownership,” Ms. Hart explained. “REIWA is proud to have contributed to this review process. As the leading authority on real estate in WA, our data and insights into the property market are unparalleled.”
The alignment of Keystart’s property price limits with REIWA’s median house prices is a strategic move to ensure the thresholds accurately reflect current market conditions. By tying the price limits to the median prices, the thresholds will automatically adjust as the market evolves, providing a dynamic and responsive approach to housing affordability. This method not only ensures that the limits remain relevant but also maximizes the number of people who can qualify for Keystart loans, adapting to market shifts and trends.
Ms. Hart continued, “By tying the price limits to REIWA’s median house prices, the new thresholds will accurately reflect current market conditions and adjust as the market evolves. This approach ensures that the maximum number of people can qualify for Keystart loans.”
In addition to updating the price limits, Keystart has also revised its income limits to match the earnings necessary to support the new property price thresholds. This revision is crucial because it ensures that the income criteria are in line with the financial realities of potential homeowners. By adjusting the income limits, Keystart acknowledges the need for a holistic approach to affordability, one that considers both the cost of properties and the financial capacity of buyers.
These changes represent a significant step towards making homeownership more attainable for many Western Australians, ensuring that Keystart’s support evolves in line with market dynamics. The broader eligibility criteria will likely result in a higher number of loan applications, reflecting the pent-up demand for affordable home financing solutions in the region.
Keystart’s role in the Western Australian housing market cannot be overstated. As a government-backed lender, it plays a pivotal role in facilitating homeownership for those who may not meet the stringent criteria set by traditional lenders. The organization’s unique model, which includes low deposit requirements and the absence of Lender’s Mortgage Insurance, is designed to lower the barriers to entry for first-time buyers and those on moderate incomes.
The recent changes are part of a broader strategy to enhance the accessibility and affordability of housing in Western Australia. By continuously monitoring and adjusting the price and income limits, Keystart ensures that its programs remain relevant and effective in a changing market. This proactive approach is essential in addressing the challenges posed by rising property prices and economic fluctuations.
Moreover, the collaboration between Keystart and REIWA underscores the importance of data-driven decision-making in the real estate sector. REIWA’s insights and data provide a robust foundation for policy adjustments, ensuring that the measures implemented are based on accurate and up-to-date market information.
The impact of these changes will be closely watched by stakeholders in the housing market, including potential homeowners, real estate professionals, and policymakers. The increased accessibility to Keystart loans is expected to drive higher participation in the housing market, fostering greater economic stability and growth in the region.
In conclusion, the recent revisions to Keystart’s property price and income limits mark a significant milestone in the effort to make homeownership more accessible to Western Australians. By aligning the thresholds with median house prices and adjusting income limits accordingly, Keystart is taking a comprehensive approach to addressing affordability challenges. This initiative, supported by REIWA’s expertise and data, promises to enhance the housing market’s inclusivity and resilience, providing more opportunities for individuals and families to achieve their home ownership aspirations.
Figures based on REIWA data as at 31 May 2024. * The new limits apply throughout the state, excluding the Kimberley and Pilbara regions. ** This property price limit does not include SharedStart loans.
