11/02/2010 - 11:51

State injects $25m into Keystart loans

11/02/2010 - 11:51

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The state government will inject $25 million into its low-cost home loans operated by Keystart as part of a major overhaul of the system under the Housing 2020 reform agenda.

The state government will inject $25 million into its low-cost home loans operated by Keystart as part of a major overhaul of the system under the Housing 2020 reform agenda.

Housing Minister Troy Buswell announced the funding injection today, estimating it could double the number of loans available to all shared equity customers in 2009-10.

The extra funding spearheads changes to the government's shared equity schemes as part of the public housing reform agenda.

Under the new system, four existing schemes would be consolidated and renamed the Step Up Home Ownership Scheme, which would be run by the state government's home lending arm, Keystart.

The move would harmonise eligibility and lending criteria for loans to people with disabilities, sole parents, public housing tenants and Aboriginal borrowers.

Mr Buswell said as part of the changes, a dedicated network of indigenous regional brokers would also be established to assist Aboriginal borrowers.

"The improved scheme will help reduce the financial barriers often faced by low income households when trying to buy a home," he said.

"This initiative is also an important element of the Government's strategy to reform public housing and help rental tenants' transition into their own homes in order to free up opportunities for others on the waiting list."

The Department of Housing will use its regional office network to identify tenants who may benefit from the scheme.

Since 2002, more than 1,500 households have been helped under the targeted shared equity schemes.

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