- 17 Feb 2025
- By API Magazine
As Western Australians ready themselves for a March state election, the Labor government has said it will extend a shared equity scheme to include apartments and townhouses if it is re-elected.
If Western Australia’s Roger Cook Labor Government is re-elected on 8 March a shared equity scheme aimed at encouraging home ownership will be extended to include apartments and townhouses.
The scheme would see $210 million invested in shared equity to support the delivery of 1,000 new apartments and townhouses and help thousands of Western Australians into home ownership.
Only a limited number of properties are made available through the scheme at the moment.
Through Keystart, the new scheme would fund up to 35 per cent of the purchase of an apartment or townhouse, purchased off plan or while under construction.
Income limits for the new shared equity products will be set at the recently raised thresholds of up to $123,000 for singles and $189,000 for couples and families.
“Housing has been one of our top priorities during this term of Government, and these changes we’re proposing if re-elected will put home ownership within reach for thousands of Western Australians,” Mr Cook said on Monday.
“We know shared equity is an important way the Government can ease the burden of trying to save for a new home, as well as making monthly mortgage repayments more affordable.
“This major boost will not only support lower income Western Australians into their own homes, it will also help to get more apartment developments off the ground sooner.
“We know housing supply and affordability is one of the critical issues facing our state.”
The government’s Keystart scheme offers loans that require just 2 per cent deposits — but interest rates are higher than those given by banks.
With the shared equity scheme, people can continue to buy the government’s share in the home — until they own 100 per cent of the property.
Modular home loan changes
Recent legislative changes made by the Cook Labor Government to make Keystart a Government Trading Enterprise will also provide new powers to support home ownership.
This includes the capacity to use funding to underwrite new developments by purchasing a portion of apartments off-the-plan, and on-sell those apartments as part of the shared equity scheme.
The scheme is expected to unlock around $600 million in new apartment and townhouse projects, both private and public. WA Labor also announced today it will establish two new Keystart home loan products that would support apprentices and graduates, as well as the delivery of modular homes.
Under the new Graduate and Apprentice Home Loan, Keystart will provide loans to graduates and apprentices, which will include low deposits, free financial coaching and lower upfront mortgage repayments that will enable borrowers to get into the housing market and transition to commercial lenders over time.
The new Modular Home Loan will make it easier for people to access finance for new modular homes, with most home loan products currently designed to finance established homes or builds via traditional construction methods. The new loan product will include additional progress payments to support builder cash flow, and low deposits to allow greater access for customers.
Article Q&A
What is Western Australia’s shared home equity scheme?
If Western Australia’s Roger Cook Labor Government is re-elected on 8 March a shared equity scheme aimed at encouraging home ownership will be extended to include apartments and townhouses. The scheme would see $210 million invested in shared equity to support the delivery of 1,000 new apartments and townhouses and help thousands of Western Australians into home ownership.
