16/12/01
Low to medium income earners with Keystart mortgages will welcome the latest 0.25 per cent Reserve Bank interest rate reduction to be passed on to them.
Housing and Works Minister Tom Stephens said that Keystart was reducing its variable lending rate from 6.25 per cent per annum to 5.99 per cent per annum.
The reduction for new borrowers was effective December 6 and will be effective for existing borrowers on December 17.
"Borrowers will save $16.00 per month on an average $100,000 loan," Mr Stephens said.
"When application fees, monthly charges and mortgage insurance are taken into account, the cost of a Keystart loan is comparable to, and in many cases better than, the standard loans offered by the major banks. Most lenders usually apply additional charges.
"Keystart is well aware that its borrowers are predominantly first home owners, and I am delighted that, as a result of its prudential interest rate risk management practices, it is able to further assist its borrowers."
Mr Stephens said the Keystart scheme focused on being a low deposit scheme to assist those who were unable to save a large deposit.
Since its inception in 1989, Keystart had lent more than $3billion to more than 37,000 Western Australian households that might not have been able to access a loan through other lenders.
"Keystart also provides a safety net to assist its borrowers who get into difficulties, helping them to stay in their homes until their circumstances change," the Minister said.
"As well as helping people buy their own homes, Keystart has made a significant contribution to employment in the housing construction industry."
Minister's office: 9213 6500
