We are a transitional lender, meaning we encourage our customers to move to another lender when you are ready to do so. There is a process for moving your loan, we refer to this process as discharging your loan.
So you'd like to move away from Keystart? Here's some information to help you get started.
Keystart is a transitional lender. This means that we help you get started on your home ownership journey with our low upfront costs, that is a low deposit and no lender's mortgage insurance. Then once you are ready and have some equity in your home, unlike other lenders, we encourage you to refinance to another lender.
If you're ready to refinance and transition to another lender, the first step is to complete a Request to Discharge Mortgage form - see link below. We'll help you through the refinancing process to make it as smooth as possible.
If you are a shared ownership customer and your loan is able to be refinanced (not all are), remember you'll need to refinance the whole loan amount, including the share that the Housing Authority may have in your home. Read more in our guide All about shared ownership.
There are a few important things to consider when refinancing, including the equity you have in your home and a careful look at the perks and costs of other lenders. Our guide to refinancing has resources and links to articles to help you prepare.
We encourage you to refinance your loan when you have built up enough equity in your home to meet the criteria of other lenders, either because you have paid off some of the loan or your home has increased in value.
You don't have to refinance, you can stay with us as long as you like! However, once you have built your equity you may be able to get a better deal with a new lender.
Building equity can take many years so you may need a long term plan for refinancing your loan.
Try our repayment calculator tool to see how paying more than your minimum repayment can impact your home loan and increase your equity over time.
The process for discharging your loan if you are selling your home differs based on your home loan type. You can complete the Discharge Mortgage Request form 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 All about shared ownership guide.
Congratulations! If you are paying out your remaining loan amount, you need to start the process of discharging your loan by completing the Discharge Mortgage Request form.
Keystart recommends you seek your own independent financial advice prior to making any decisions about your financial needs.
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. He is applying for a new loan of $327,865 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.
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.
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.
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
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.
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.
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.
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.
The timing for completing the discharge form is important. You can return the signed form to Keystart when you have:
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.
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.
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.
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.
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.
The discharge request form is required to be returned to Keystart when:
You'll need to complete your discharge at least 10 days before settlement is due to avoid any delays in settlement from occurring.
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.