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High-LVR lender falls short of full 25bps cut

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Reporter 4 minute read

A Western Australia-based lender has slashed its variable mortgage rates in response to the Reserve Bank’s cut to the cash rate, but has fallen short of the full 25bps reduction.

Keystart Home Loans is the latest lender to drop its mortgage rates in response to the Reserve Bank of Australia’s (RBA) cash rate reduction, cutting its standard variable rate by 19bps from 5.34 per cent to 5.15 per cent, effective from 1 July. 

The lender fell short of the full 25bps cut but noted that its decision was based on the average standard variable rate offered by the four major banks.

“Given the low deposit nature of the lending we provide, our interest rates policy enables us to manage our lending risk responsibly whilst remaining focused on our vision,” the lender noted.


Keystart was founded in 1989 as an initiative of the Western Australian government, with the primary purpose of assisting first home buyers (FHBs) by offering low-deposit home loan products.

Many pundits are expecting the recent wave of mortgage rate cuts to further fuel home loan demand from FHBs, which have also benefited from the continued fall in dwelling values.

According to the latest Lending to Households and Businesses data from the Australian Bureau of Statistics, FHB market share increased to 18.2 per cent in April, up from 17.6 per cent 12 months prior.

[Related: Non-major banks pass on full rate cut]

High-LVR lender falls short of full 25bps cut
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