Refinancing to another lender
We're a transitional lender. This means that we helped you get started on your home ownership journey with our low upfront costs, including our low deposit requirement and no lender's mortgage insurance. Then once you're ready and have some equity in your home, unlike other lenders, we encourage you to refinance to another lender. You may be able to get a better deal with a new lender.
Track your progress to 20% in our app
We have designed our app to help you track your progress towards 20% equity. The app allows you to check in on your home's estimated value and your loan balance, so you'll know when you're ready to move on and refinance with another lender who may offer lower interest rates and other benefits. Plus you'll get loads of financial resources and can manage your home loan all in one place.
You may find it helpful to read our guide all about equity.
Consider your options
If you want to refinance to another lender, you'll need to pick the lender and loan product that is right for you. We'll need this information to arrange your refinancing.
There are a few important things to consider when refinancing, including the equity you have in your home and the perks and costs of other lenders. Our guide to refinancing has resources and links to articles to help you prepare. We sometimes are approached by other lenders with refinancing offers for Keystart customers. You might want to consider those or you could contact a broker to help you work through your options.
If you are a shared ownership customer and your loan can be refinanced, remember you'll need to refinance the whole loan amount, including the share that the Housing Authority may have in your home. You can read more in our guide to refinancing your shared ownership home.
If you have a fixed Shared Ownership Home Loan, you can't refinance your loan but you can sell it back to the Housing Authority.
Ready to refinance?
There are a few steps in moving your Keystart home loan (we call this discharging your loan) - with the Housing Authority, settlement agents, and your new lender all involved. Don't worry, the process is quite straightforward and we're here to help you through.
To get started, complete the mortgage discharge request form
We refer to the process of moving your home loan as discharging your loan. If you're ready to refinance to another lender, the first step is to complete a Mortgage Discharge Request form. We'll help you through the refinancing process to make it as smooth as possible.
Once you have completed the form, you can scan and email it to us at customer@keystart.com.au to get started.
We recommend that you seek your own independent financial advice prior to making any decisions about your financial needs.
FAQs about moving your Keystart loan
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Q
I have an advance position on my loan. How does that affect my discharge process?
A
The loan balance has already taken into account the funds showing in “advance”, meaning the advance amount has been deducted from your loan balance as you made payments.
As an example, Ibrahim has an advance of $15,470 showing in his Client Portal. That amount has already been taken off his loan balance of $327,865, shown as the loan balance in the Client Portal. Ibrahim wants to refinance his loan, so he'll need enough funds to cover his loan balance, plus fees and charges. He is applying for a new loan of $327,865 (plus fees and charges) with another lender.
If Ibrahim did not have an advance amount, his loan balance would be higher and he would need to have funds to cover a loan amount of $343,335.
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Q
I’m paying out my home loan in full. How do I get my Certificate of Title?
A
Keystart will send instructions to the Housing Authority to forward instructions to Landgate to remove our interest from the title. This will take place when the loan is paid out in full and fees have been received to remove our interest from the Certificate of Title.
Further action or funds may be required if it is determined a caveat has been noted on the title that needs to be removed.
If the title is clear, Landgate may take approximately 6-8 weeks to remove Keystart's mortgage. Contact Landgate if you require any further information.
If your property is sold, the title will be transferred to the new owner.
If your loan is refinanced, your new lender will be the holder of the title.
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Q
Who provides the transfer of land documents?
A
Settlement documents are completed by the Housing Authority, who act as Keystart's settlement agent. If any settlement documents are required, your new lender or settlement agent will need to contact Housing Authority to obtain the required documents to proceed.
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Q
Can I sign an old form I found at home?
A
Our form is updated from time-to-time so you'll need to fill in the latest form to avoid any delays in processing. You can find this on How to move from Keystart
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Q
What happens if I don't have enough funds to cover my loan amount?
A
If you're planning on refinancing and the amount your new lender is going to lend you is not enough to cover your Keystart loan amount, you'll have what we refer to as a shortfall. This also occurs if you are selling your home and the sale proceeds are lower than your loan amount.
If you have a shortfall at settlement, this amount needs to be paid to your settlement agent. Please don't pay the shortfall amount directly into your Keystart loan as that will affect your payout figure and documents may need to be redone as a result, which will delay settlement.
If you have exercised all avenues to obtain funds to cover your shortfall and you are unable to do so, contact Keystart as soon as possible to discuss your options. Settlement will not proceed if the shortfall cannot be met or an agreement has not been reached in relation to the shortfall. -
Q
Is there a fee to discharge my loan?
A
There is no fee charged to pay out your loan early but there is a Mortgage Release Fee charged at the time of settlement.
As part of the settlement process, Keystart's mortgage is removed from the title as we will no longer have an interest in the property once it has been sold or refinanced.That is the Mortgage Release Fee. The fee includes an electronic lodgement fee, Landgate's registration fee and a document preparation fee.
You don't need to pay the fee directly to us as it is included in the discharge amounts.- If you're refinancing your loan, this fee is collected at settlement and is added to the final figure being requested from your new lender.
- If you're selling your home, this fee is added to the final figure being requested from your settlement agent.
- If paying out the loan with your own funds, the fee is included in the payout quote to be paid to finalise the loan.
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Q
What is settlement and when does it take place?
A
Settlement is the arrangement of transferring or changing the ownership of the home. Two parties are generally involved, the buyer and the seller; or the parties authorised to act on their behalf.
Settlement takes place on a particular time on a particular day. As there are several parties involved, the timeframe until the settlement date allows for all the documentation to be gathered. You'll be advised of your settlement date once your form has been received and the Housing Authority has prepared the settlement.
Please note if you have a Rural Home Loan, we require 10 to 14 working days to process the discharge, and a further three days for the Housing Authority to prepare for settlement. -
Q
Can my broker do the discharge for me?
A
To protect your privacy we're unable to provide information specific to your loan directly with your broker. This includes information in relation to the status of the loan discharge or the details of the payout quote. Information can be provided to you, your nominated settlement agent or the new lender.
You can ask your broker to help you with the process but we can't talk directly to your broker.
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Q
Am I committing to leaving Keystart if I complete the discharge authority form?
A
The timing for completing the discharge form is important. You can return the signed form to Keystart when you have:
- approval on finance with a new lender, or
- an offer on your home.
However, if you have sent in the form and your finance or the offer is cancelled, then please contact Keystart by calling 1300 578 278 and we can cease any further action from taking place and the loan will continue as normal.
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Q
Is there a time limit for the discharge form?
A
The form expires six months from the date of it being lodged with Keystart. If settlement has not occurred within six months of the discharge form being signed, we will need a new one to be completed.
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Q
Do all borrowers need to sign the same form?
A
We can accept separate forms signed by each person that is a party to the loan but we can't go ahead with the discharge until all forms have been received.
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Q
Is a new discharge form needed if I change my mind between refinancing, selling or paying out with my funds?
A
Yes. We'll need a new form to be completed to ensure we have the correct information so we can complete all processes that are required.
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Q
Do I need to provide my forwarding address and contact numbers if I’m not moving from my home?
A
All fields are required to be completed to confirm the details we have on your file are correct and have not changed. If you are selling your home and are unsure of your new address, please provide the address of a friend or relative that can receive mail on your behalf.
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Q
When do I need to do a discharge request form?
A
The discharge request form is required to be returned to Keystart when:
- formal finance approval is granted by your new lender, or
- you receive an offer for your home if it is being sold.
You'll need to complete your discharge at least 10 days before settlement is due to avoid any delays in settlement from occurring.
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Q
Why is a discharge request form required?
A
If you are moving your loan away from Keystart, you need to tell us formal instructions advising us of your intention to discharge (close) your loan secured against the security property (your home). The return of the form prompts Keystart to prepare the documents for settlement and act in accordance with your instructions.
It's a good idea to keep a copy of the form for your records as you may need to provide a copy for your new lender or broker.
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Selling your home
Selling your home
The process for discharging your loan if you are selling your home differs based on your home loan type. You can complete the Mortgage Discharge Request form on this page to get started and we can advise you of the next steps.
If you have a shared ownership home loan, you can read about the process for selling your home in the Selling your shared ownership home guide.
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Paying out your home loan
Congratulations! If you are paying out your remaining loan amount, you need to start the process of discharging your loan by completing the Mortgage Discharge Request form on this page.
What is equity?
