The WA government has announced it will fund up to 1,000 loans with the state buying an equity share of up to 35% of a home's value to a maximum of $250,000.
The program is available immediately for people wishing to purchase modular homes which can be a popular choice in regional WA where the cost of a traditional build and access to trades can make housing inaccessible.
The WA government said the delivery of modular homes is also increasing in the metropolitan area, driven by good design and speed to market.
The buildings are largely constructed off-site then later assembled on-site.
WA focus on affordable housing
The program is another initiative to address the lack of affordable housing in the state which has seen property prices boom over the past three years.
It follows the announcement of $12.3 million being set aside in the upcoming state budget to lure interstate and international tradespeople to work in Western Australia.
Last week, a study by the Bankwest Curtin Economics Centre found more than half of Western Australian households considered their housing unaffordable, whether they were renters or paying a mortgage.
That was a 91% jump in just two years, with the shortage of homes cited as a major factor.
The Centre's report found median weekly rent in WA - now $740 - had increased 76% since 2020.
Keystart shared equity product to launch in September
The modular scheme has kicked off before the state's new Keystart products to provide shared equity loans for the purchase of new or under-construction units, townhouses, or other multi-residential dwellings.
Under that scheme, the government will also offer 1,000 loans with the state purchasing an equity share of up to 35% of the home's value, up to a maximum of $250,000.
The WA government said the scheme is aiming to make it easier for lower- and middle-income households to own their own homes by lowering the upfront cost of purchase and ongoing mortgage payments.
It's also seen as a support for getting more affordable multi-residential projects off the ground sooner.
The Cook government's Build to Rent Kickstart Fund will also 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 in a bid to deliver affordable build-to-rent options.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.40% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $248 | $350 | 60% |
| Disclosure |
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