The Western Australian government will reduce interest rates for home loans backed by them through Keystart by nearly one percentage point, alleviating financial pressure on some of the state’s most vulnerable households.
Keystart has lower home loan entry fees but higher interest rates cut from 8.26% to 7.35% which is a lot higher than interest rates from banks or finance brokers like All Australian Finance who search for the lowest home loan interest rates.
This 2023 home loan interest rate cut news will help many of the 121 thousand Keystart borrowers who have been finding it difficult to service their government-backed home loans. There have been record numbers of borrowers defaulting on their loans repayments after months of interest rate rises.
Many borrowers were lured by low-interest rate home loans based on the RBA’s assessment of low-interest rates staying low.
The RBA host lavish lunches for fat cats while budget overruns on the RBA’s accommodation at their Martin Place offices renovations in Sydney cost near to half a billion dollars. Recently the governor of the RBA was advising Australians to work harder and spend less.
Blind Freddy could have foreseen that handing out billion to companies like Qantas during the Covid pandemic lockdowns for not flying would hurt the economy later with high-interest rates but the RBA couldn’t foresee that. I did. That’s why I fixed my home loan interest rate for 5 years at about half the current variable interest rate but that’s little consolation for the 121K Keystart home loan sufferers in the mortgage belt.
Herbert Hoover wrote:
“Blessed are the young, for they shall inherit the national debt.”
News of the Keystart interest rate reduction is welcome but their hands are mainly tied by the interest cash rate set by the RBA.