HomeStart to pass on rate cut to customers

Media release

For immediate release

Tuesday, 2 September 2008 

HomeStart will pass on the RBA’s interest rate cut to customers. The RBA has decided to reduce the official interest rate by 0.25% after 12 consecutive rises, the first reduction in almost seven years.

With high interest rates affecting home sales and preventing many first home buyers from entering the market, as well as placing increased stress on home owners, HomeStart has welcomed the RBA’s move to reduce the pressure of continual increases.

HomeStart CEO Gary Storkey said that the interest rate cut is good news for Australian families struggling to overcome the challenge of housing affordability, as well as those facing mortgage stress – but only if mortgage providers pass the saving on to their customers.

“We have cut our variable interest rate by the full 0.25% so that customers will gain the greatest benefit and we’re pleased to be in a position where we can do that,” Mr Storkey said.

The reduced rate will apply to new and existing customers from 18 September 2008.