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The Western Australian government has introduced a low-deposit modular lending product and plans to roll out a new shared equity loan to assist home buyers.
The Western Australian Labor government has said housing will be more affordable for thousands in the state after announcing the launch of a new lending product and a major funding increase in the upcoming state budget.
The Cook government on Monday (16 June) launched Keystart, a new low-deposit modular loan product to assist more people, particularly in regional Western Australia, to purchase a modular home.
Modular construction is popular in regional Western Australia, where access to trades and the cost of a traditional build can make housing inaccessible, the government said. Delivery of modular homes is also increasing in the metropolitan area, driven by design and speed to market.
The Western Australian government said that low-deposit modular loans will improve access to affordable homes that can be delivered faster.
The Keystart product is also aimed at providing additional progress payments to support builders’ cash flow and to grow the industry.
In September, Keystart is expected to launch its new shared equity product for new or under-construction apartments, town houses, or other multi-residential dwellings.
Under the $210 million investment, 1,000 shared equity loans will be available with the state government purchasing an equity share of up to 35 per cent of the home’s value or a maximum of $250,000.
The shared equity product is designed to make it easier for lower and middle-income households to enter home ownership by lowering both the upfront purchase cost and ongoing mortgage repayments, while supporting more affordable multi-residential projects to get off the ground sooner.
A new pilot product for graduates and apprentices is also planned to launch later this year with features including low deposits, lower mortgage repayments, and free financial coaching that will enable younger Western Australians to get into the housing market sooner and transition their loan to a commercial lender over time.
The Cook government’s Build to Rent Kickstart Fund will launch by the end of 2025, providing up to $75 million in no-interest construction loans and low-interest loans for up to 10 years to assist in the delivery of affordable build-to-rent developments.
Keystart expands affordable housing support
The new products are part of the state government’s Keystart program, which is run by Western Australian government-owned home lender, Keystart.
The Western Australian government said the new products are supported by the new Keystart Act 2024, which made the lender a Government Trading Enterprise with new powers, including project financing for affordable housing projects.
The government also announced a range of new appointments to the Keystart board.
From 1 July, Michael Barnes, former under treasurer, will become chair of Keystart.
New board members also include Sue Ellery, former commerce and finance minister, and Kerryn Edwards, who brings experience in the community housing sector, regional housing, and shared equity programs.
Paige Walker will also join the board from 1 January 2026, with extensive experience in property development, including as the former Western Australian president of the Property Council.
The new board members will join existing members, Rob McKenzie and Julie Keene, who bring a wealth of experience and ensure continuity of the board, according to the state government.
Commenting on the changes, Premier Roger Cook said: “Western Australia’s booming economy and growing population has put pressure on our housing market, which is why my government is laser focused on ensuring every Western Australian has a home.
“That means supporting Keystart, a uniquely WA agency that was created by a WA Labor Government and has helped Western Australians into home ownership for decades.
“This investment is one of a wide range of levers my government is utilising to boost housing supply and improve access to affordable homes for more Western Australians.
“We are getting to work on delivering on our election commitments, delivering new loan products to support a range of homes – whether they be modular builds, townhouses, or apartments.”
Housing and Works Minister John Carey said: “We continue to make changes to Keystart that improve its power to help more Western Australians, whether that’s through raising income and property prices limits, lowering interest rates or offering new products.
“These latest reforms demonstrate how our State Government continues to change and adapt policies to enable more Western Australians to purchase their first home.”
House affordability is a major issue in Western Australia, where home values rose 11.5 per cent in Perth and 11.9 per cent in regional Western Australia over the year to March 2025, outpacing all other capital cities and regions, according to PropTrack.
To help tackle the problem, in March, the Western Australian government increased stamp duty exemptions and concessions for first home buyers in its first major housing policy announcement since its re-election.
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