Western Australia's state government has revamped its Keystart program to boost housing affordability and help first-home buyers break into the market.
The recent changes made under the Western Australian government initiative include the addition of low-deposit loans for modular homes, and a Shared Equity Scheme, opening the door to a wider segment of buyers previously priced out of the market.
"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," said WA Premier Roger Cook. "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."
Keystart was established in 1989 as a Western Australia state government initiative to improve housing accessibility. Operating with a single shareholder – the Housing Authority – and governed by an independent board, the organization is focused on reducing barriers for first-home buyers. This includes lowering upfront costs and removing the requirement for lenders mortgage insurance (LMI). The latest product updates form part of the State Government’s broader revitalization of Keystart, underpinned by the recently introduced Keystart Act 2024, the government said.
"These changes will allow us to play a greater role in supporting housing outcomes for Western Australia, including increasing the supply of housing to the market," said Mark Tomasz, chief executive officer of Keystart. "These changes will allow us to continue working toward our vision: to make the dream of affordable home ownership a reality for more people."
The low-deposit modular home loans, now available, are designed to improve access to affordable housing and accelerate delivery to market.
"Modular construction is a popular choice in regional WA where access to trades and the cost of a traditional build can make housing inaccessible," said Cook's Labor camp. "The product will also provide additional progress payments to support builders' cashflow and to grow the industry."
In addition, this September, Keystart plans to roll out a $210 million shared equity product targeting new and off-the-plan apartments, townhouse, and other multi-residential builds. Under the scheme, 1,000 shared equity loans will be available, with the State Government’s Housing Authority contributing up to 35% of a property’s value, or a maximum of $250,000.
The plan aims to help lower-income buyers break into the market by cutting upfront costs and reducing mortgage repayments, while also fast-tracking the delivery of affordable multi-residential developments.
Maxine Farmer, founder and director of Perth-based brokerage Maxon Finance, said it’s crucial for both brokers and borrowers to remember: applications must go directly through Keystart. “They’re very strict,” she told Australian Broker.
"Keystar has the most stringent finance," Farmer said. "They go through every single thing on your bank statements. If you're $100 over, they cut your lending back. It's very tough, unless you've got someone experienced in Keystar."
The veteran broker noted that borrowers applying for the modular home loan need just a 2% deposit, with income caps set at $148,000 for singles and $218,000 for couples and families. The maximum property value is limited to $730,000 within the Perth metropolitan area, excluding mining towns. Eligible borrowers can finance up to 98% of the property’s value.
Other Keystart updates include a pilot program for recent grads entering the market and new incentives to spur apartment block developments.
The new pilot program for graduates and apprentices is set to launch later this year, and will offer lower deposits, reduced repayments and financial coaching, all aimed at helping young Western Australians step into the property market sooner.
In addition, the Cook government’s "Build to Rent Kickstart Fund" is also set to launch before year end, providing up to $75 million in no-interest and low-interest loans for up to 10 years. The program is aimed at fast-tracking affordable apartment blocks and build-to-rent projects across WA.
"These investments are 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," Cook said.
"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. It's all part of our budget, which is focused on delivering houses, hospitals and jobs so that we can maintain WA's nation-leading economy and secure a future that's made in WA."
The program updates come as Australia grapples with a deepening affordability crisis, driven by soaring living costs, a tight housing supply and rising property prices. Perth, in particular, has been central to the surge. Once known for its relative affordability, the city is now booming off the back of a strong job market. Property values in the WA capital jumped 10% between April 2024 and April 2025, pushing the median price to $807,728, according to CoreLogic’s latest Hedonic Home Value Index.
