Dr. Steve Thomas questions the Minister for Housing regarding the impact of the recent interest rate hike on Keystart borrowers, specifically concerning interest rates and monthly repayments. The Minister's response refers to Keystart's policy and due diligence process before announcing changes.

AnsweredQoN 1375Legislative Council
Asked
8 November 2023
Portfolio
Housing

QuestionView source ↗

KEYSTART
1375. Hon Dr STEVE THOMAS to the minister representing the
Minister for Housing:
I refer to the
Keystart shared ownership home scheme.
(1) Given that
the official interest rate was lifted by 25 basis points on Tuesday to 4.35 per
cent, what impact will that have on Keystart interest rates?
(2) What interest
rate will Keystart borrowers be paying from now on?
(3) Will there be
an increase in the monthly repayments for Keystart loans?
(4) If yes to
(3), what is the average monthly repayment increase for loan holders?

AnswerView source ↗

I thank the honourable member for
some notice of the question. The following response has been provided by the
Minister for Housing.
(1)–(4) Keystart
changed its interest rate policy on 1 July 2023, setting its rates based on the
movements of the Reserve Bank of Australia's
official cash rate plus a fixed margin of 350 basis points. Information
pertaining to Keystart's interest rate policies are publicly
available via the Keystart website, which I will table. Keystart, like other
lending institutions, follows a comprehensive internal process prior to any
public announcement about interest rates and seeks to service its customers
while still responsibly managing its risks
as a low deposit home loan provider. Once this due diligence is undertaken,
Keystart will communicate any change to its interest rate publicly.
I table the
relevant website page.
[See paper 2783 .]

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