Powered by MOMENTUM MEDIA
the adviser logo
Lender

High-LVR lender falls short of full 25bps cut

by Reporter2 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. 

To continue reading the rest of this article, create a free account
Already have an account? Sign in

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
percentage ta
TheAdviser logo
percentage ta

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark lewis fast ta llosc4

In Memoriam: Mark Lewis, 1963–2022

Mark Lewis passed away on Saturday (13 August). Mr Lewis was a well-known identity in the third-party broker...

READ MORE
anthony waldron mortgage choice ta ithtxm

Broker expertise key for securing right loan: Mortgage Choice

The data, which is derived from a June survey of 1,002 broker customers and conducted by Honeycomb Strategy,...

READ MORE
Mark Bouris new ifa

Brokers need to focus on the ‘value-add’: Mark Bouris

With competition among brokers increasing as the number of brokers rises – coupled with the fact that fewer...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more