The proposal would lower mortgage costs by legislating a HomeKeeper mortgage product, with a default regulatory ceiling at no more than 1.0% above the Reserve Bank of Australia (RBA) cash rate.

• All the big 5 banks would be required by regulations to offer HomeKeeper mortgage products.
  – Banks would be able to charge interest rates above the regulatory ceiling for HomeKeeper products, but would be required to seek approval from both Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC) before doing so.
  – ACCC and APRA would have the authority to block banks from imposing unnecessary mortgage price increases.
• The HomeKeeper mortgage product would be available to any owner-occupier whether or not they are a first home buyer.
  – People with a current mortgage on their home would be able to transfer into a HomeKeeper mortgage product at their own choice.
  – HomeKeeper mortgage products would not be available for investment property mortgages, commercial premises or holiday homes.

The big banks could still offer other products and there would be no compulsion on anyone to switch to a HomeKeeper mortgage product.

The proposal would start on 1 July 2025.