ISCOVER
The West Australian government has announced a further increase to price limits on Keystart loans in a bid to widen support for home buyers.
The West Australian Labor government has increased the property price limits for its Keystart program, which offers loans aimed at supporting borrowers to buy affordable housing.
On Wednesday (20 August), the Cook government announced the property price limit on Keystart’s low-deposit loans will increase from $730,000 to $800,000 across the state.
The new cap is in line with Perth’s median house price and delivers parity to price limits across Western Australia, the government said.
The price ceiling for Keystart’s existing shared equity loan will increase from $615,000 to $660,000.
Property price caps for the Cook government’s $210 million shared equity expansion, which will provide 1,000 shared equity loans for new apartments and townhouses, will be confirmed later this year when the new product is introduced.
In December 2024, the West Australian government reformed Keystart’s product settings mechanism to allow property price limits to be reviewed regularly against median property prices sourced from the Real Estate Institute of Western Australia (REIWA).
The reforms were aimed at making sure Keystart’s property price caps better reflect market conditions, helping to ensure more West Australians can access low-deposit loans to purchase housing.
At the time, the government increased the property limits from $650,000 to $730,000. However, given the escalating prices in the western state, the limits have been adjusted once again.
Commenting on the changes, Treasurer Rita Saffioti said: “Our government is absolutely focused on boosting the supply of affordable housing, and our reforms to Keystart mean we can now regularly update property price limits and give Western Australians more opportunity to buy their own home.
“Under our government, Keystart will play an even stronger role in making the dream of an affordable home a reality for more people, through our modular home loans, graduate and apprentice loans, and our $210 million shared equity expansion.”
WA targets housing accessibility
The update to home buyer support is part of the West Australian government’s Keystart program, delivered through its state-owned lender Keystart.
In June, the Cook government launched a new product under the program – a low-deposit modular loan product to assist more people, particularly in regional Western Australia, to purchase a modular home.
Next month, Keystart is expected to launch its new shared equity product for new or under-construction apartments, townhouses, 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.
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.
On Wednesday (20 August), the West Australian government also called for registrations of interest from developers looking to establish build-to-rent projects in the state, as part of the scheme.
The early registration process will help Keystart gauge interest ahead of formal applications opening later this year.
Housing 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 West Australian government increased stamp duty exemptions and concessions for first home buyers in its first major housing policy announcement since its re-election.
[Related: WA government to boost funding for home buyer support]
JOIN THE DISCUSSION