New funds for Western Australian low-cost home loans

The Western Australian state government has injected an extra $25 million into its low-cost home loan scheme as part of a major policy overhaul.

Housing minister Troy Buswell estimated that the funds could double the number of loans available to all shared equity customers in 2009-10.

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

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

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

Home loan approvals fell for a third consecutive month in December last year, it was revealed this week. The reduction in the federal government’s stimulus measures for first home buyers has prompted some Aussies to compare home loans in search of the best financing options.

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