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Pilot program by WA Government launching in 2026 to refine modular housing loan policies.
The Western Australian Government has unveiled a significant home ownership initiative, introducing targeted support for first-time buyers, with a particular focus on modular housing and modular home loans. (main pic: Modular homes manufactured by Kewdale based Offsite for My Home Australasia.)
Premier Roger Cook has announced a $210 million investment in shared equity schemes and new Keystart loan products, aiming to increase housing accessibility for thousands of Western Australians. A key element of the plan is the introduction of a modular home loan, designed to improve financing options for buyers and boost regional housing supply.
Under the expanded Keystart scheme, the Government will take up to a 35% equity share (or $250,000) in new apartments and townhouses, easing the upfront financial burden on prospective homeowners. The initiative is expected to unlock $600 million worth of new apartment and townhouse projects, both public and private.
Two additional Keystart loan products will be introduced to support specific buyer groups: graduates and apprentices, and those seeking to purchase modular homes. The Graduate and Apprentice Home Loan will provide lower deposits, free financial coaching, and reduced mortgage repayments, enabling borrowers to enter the housing market and transition to mainstream lenders over time.
The new Modular Home Loan aims to address financing gaps in the sector, as many conventional loan products are geared towards established homes or standard construction methods. The loan will feature additional progress payments to ensure builder cash flow, as well as low deposit options to improve accessibility. With modular construction gaining traction in regional WA, where traditional building methods face supply chain and workforce constraints, the Government expects this initiative to increase housing supply and affordability.
A pilot program for both the Graduate and Apprentice Home Loan and the Modular Home Loan will commence in the first half of 2026, allowing for adjustments before a broader rollout.
Premier Cook highlighted housing as a top priority for the Government:
“Housing supply and affordability remain critical issues for Western Australians. By expanding our shared equity and loan offerings, we are making home ownership achievable for more people, particularly in regional areas where modular construction offers a practical and efficient solution.”
WA’s housing market has seen significant growth, with over 19,100 homes built in the 12 months to September 2024—the highest level in seven years. Building approvals have also surged, exceeding 21,000 in 2024, indicating strong demand for new housing solutions.
