Keystart mortgage rate reduction

6/9/01
Low to medium income earners with Keystart mortgages will welcome the latest 0.25 per cent Reserve Bank interest rate reduction which is to be passed on to them.
Housing and Works Minister, Tom Stephens said today that Keystart directors had recommended that the lending rate be reduced from 6.75 per cent to 6.5 per cent, effective tomorrow, September 7.
"Borrowers will save $15.70 per month on an average $100,000 loan," the Minister said.
"When application fees, monthly charges and mortgage insurance are taken into account, the cost of a Keystart loan is comparable to, and in most cases better than the standard loans offered by the major banks. These are generally additional charges by most lenders.
"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."
The Minister said that 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 loaned more than $3 billion to more than 37 thousand West Australians who might not have been able to access a loan through other lenders.
"Keystart also has a safety net to assist borrowers who get into difficulties, giving them a far degree of flexibility if their circumstances change.
"As well as helping people buy their own homes, Keystart has made a significant contribution to employment in the housing construction industry,' Mr Stephens said.
Media contact: Julie Cole 9213 6500