Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

HomeStart announces mortgage rate cut

yelp homestart ta

yelp homestart ta
Reporter 1 minute read

The high-LVR lender has cut its standard variable mortgage rate, becoming the latest lender to reprice its offering following the Reserve Bank’s monetary policy adjustment.  

HomeStart Finance has announced that it will decrease its standard variable mortgage rate by 25bps to 5.14 per cent, effective from 20 June.

HomeStart becomes the latest lender to cut its home loan offerings following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate to a new record low of 1.25 per cent.

Earlier this week, the lender’s Western Australian peer, Keystart Home Loans, chose not to pass on the full 25bps cut, opting instead to reduce its standard variable rate by 19bps.  

Keystart said 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.

Both HomeStart and Keystart were founded as part of initiatives of the South Australian and Western Australian state governments, 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.

Advertisement
Advertisement

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: MyState announces ‘equitable’ rate cut]

 

 

 

PROMOTED CONTENT


 

HomeStart announces mortgage rate cut
yelp homestart ta
TheAdviser logo
yelp homestart ta

 

more from the adviser
Gavel paperwork guidance Broker breaches guidance expected in ‘early 2021’

  ASIC will release a new regulatory guide on the application o...

happy survey A fifth of brokers unfazed by responsible lending changes: survey

Almost one in five mortgage brokers does not believe the proposed...

online education tools ta How this broker uses online tools to educate her clients

From creating videos to recording podcasts, the newly crowned Mor...

FROM THE WEB