Increased interest rates in the Keystart Housing Scheme

[COUNCIL — Thursday, 24 February 2011]

Hon Lynn MacLaren; Hon Norman Moore

KEYSTART — INTEREST RATE

98. Hon LYNN MacLAREN to the minister representing the Minister for Housing:
(1) Can the minister confirm that at least 55 089 people are on the public housing waiting list?
(2) How will the decision to increase interest rates in the Keystart housing scheme to up to 7.78 per cent,
which is in excess of what many banks in Western Australia charge, impact on the government’s
strategy to increase the availability of low-cost, affordable housing for first home buyers who are
struggling to maintain stable accommodation for themselves and their dependents?
(3) What is the average income of people who have a Keystart loan?
(4) What is the average monthly repayment?

Hon NORMAN MOORE replied:
I thank the member for some notice of this question, which I will answer on behalf of the Minister for Finance.
(1) As at 31 January 2011, there were 24 481 applicants on the public housing waiting list. A total of
54 666 people were associated with the public housing waiting list as at 31 January 2011.
(2) An interest rate of 7.78 per cent is the average of the four major banks’ standard variable rate. This rate
is in fact lower than that of the ANZ, Westpac and Commonwealth Banks, which do the majority of
lending in Western Australia.
(3) Couples and families in the range of $80 000 to $90 000.
(4) Based on the portfolio’s average loan balance of $270 000, the monthly repayment is $1 790.