Securing Our Future
Keystart Agrees to Partial Loan Book Divestment
Keystart has been working with the State Government to secure private sector investment to help further improve the State’s affordable home loan program, reduce Government debt levels and assist Keystart with long-term and sustainable financing.
Following a fair, open and competitive process with the private sector, Keystart is delighted to announce that it will be partnering with Bendigo Bank who will acquire part of Keystart’s loan portfolio via equitable assignment.
The selection of a partner was an important consideration for Keystart and the State Government. Bendigo Bank have demonstrated a successful track record in partnering, they are Australia’s fifth largest retail bank and have a long and established history in the Australian residential mortgage market.
As an existing Keystart customer there will be no change to your service levels. You will continue to deal with Keystart in the same way on a day-to-day basis.
To help answer any queries you may have, please take a minute to read the following questions and answers.
Equitable assignment is a tool that will allow for a reduction in debt, in this case, debt that is held by the State Government. This is done by transferring all of the risk and benefits from home loans to a third party. After this process, Keystart will still hold the certificate of title as legal mortgagee, and continue to manage the loans.
Yes, it’s common practice for banks and lenders both here in Australia and around the world. Recently, both ING and RAMS carried out a similar process, assigning billions of dollars’ worth of loans to other financial institutions.
Since 1989, through State Government’s funding, Keystart has helped tens of thousands of Western Australians into home ownership. To be able to continue doing this, Keystart is looking to find different sources of funding from the private sector, rather than purely relying on State Government funding.
This process is the first step in Keystart securing funding for its long-term and sustainable future to help more West Australians into home ownership.
Yes, Keystart will continue to manage your loan, as always, on a ‘business as usual’ basis.
Keystart will continue managing your loan, so please continue contacting us as you normally do.
There will be no impact on an existing customer’s loan terms and conditions. We will continue managing your loan in accordance with Keystart’s existing interest rate setting policy, eligibility criteria and rigorous loan assessment process.
Loans that meet certain repayment and loan valuation ratio requirements will be assigned.
Shared equity loans are not included in the assignment process.
The Housing Authority will remain your shared equity partner in your home loan, on a 'business as usual basis'.
|Media release:||Click here for the media release.|
|Media queries:||All media enquiries about the equitable assignment are being handled by The Brand Agency. Please contact The Brand Agency; Tony Monaghan (0428 280 593).|
|Contact Us:||Click here for our feedback form|