Great news for Keystart customers!
Great news! Keystart is pleased to announce an update to our interest rate setting policy. Since 2011, our policy has been to use the average of the standard variable interest rate of the four major banks (ANZ, CBA, NAB, Westpac). Given the low deposit nature of the lending we provide, our interest rate policy has enabled us to manage our lending risk responsibly whilst remaining focused on our vision of making the dream of affordable home ownership a reality for more people.
Following an extensive review, including careful consideration of what our customers are telling us about increased cost of living pressures, our new interest rate policy is to base our rate on the movements of the Reserve Bank of Australia's (RBA's) official cash rate.
As a result, in response to recent change in the Reserve Bank official cash rate, Keystart's rate will reduce from 8.26% to 7.60% effective 1 July 2023. Under Keystart's previous policy, our interest rate would have increased to 8.51% following the recent movement of the big four banks.
This new rate applies for all Keystart customers with loans commencing after 16 October 2009. For all Keystart customers with loans commencing prior to and including 16 October 2009, the standard variable interest rate will reduce from 7.48% to 6.82% at the same effective date.*
The new policy will better serve the interests of our customers and our mission as a transitional lender, due to the following reasons.
The benefits of the new policy are:
If you're a Keystart customer, you'll receive an update from us soon to let you know your new minimum monthly repayment.
If your new minimum repayment is less than the amount you are currently paying, we won't make any change to your direct debit, unless you advise us to do so. If you can keep your direct debit as the higher amount, you'll be paying off your home loan sooner, bringing you closer to refinancing to another lender.
If you choose to change your direct debit amount, you can get that set up now by completing the form below.
You can amend your payment amounts yourself if you wish to do so. Remember, if you pay more than your minimum monthly repayment amount, you'll be paying off your home loan sooner, bringing you closer to refinancing to another lender.