- The State Government is seeking a lead financial adviser to work with Keystart as the first step in a process to implement a partial divestment of the loan book
- Business as usual for Keystart's clients
The State Government is seeking a lead financial adviser to work with Keystart in securing private sector investment to further improve the State's highly successful affordable home loan program, Treasurer Mike Nahan and Housing Minister Colin Holt announced today.
As part of the 2015-16 State Budget, the Government announced it was investigating options for a partial divestment of Keystart's loan book.
"This represents the first step in enabling Keystart to partner with the private sector to continue to meet its affordable housing objectives and reduce its reliance on State Government borrowings," Dr Nahan said.
"It is important to note there will be no change for Keystart's clients because it will be business as usual from a service delivery point of view."
Once appointed, the lead financial adviser will work with Keystart and the Department of Treasury to develop a solution that:
- will reduce record government borrowings to Keystart
- ensures there is no change to service levels or the terms and conditions for existing Keystart customers
- does not impact upon Keystart's existing interest rate setting policy, lending eligibility criteria or rigorous loan assessment process.
The lead financial adviser will then assist Keystart in conducting a competitive process to identify a private financing partner.
Mr Holt said eventual private investment would allow Keystart to be more flexible in meeting the key targets of the State Government's Affordable Housing Strategy 2010-2020: Opening Doors to Affordable Housing.
"Keystart lending has reached record levels under the Liberal National Government, enabling the delivery of the Australian-first affordable housing strategy," he said.
"Keystart will continue to play an important part in the strategy, which has achieved more than 20,000 affordable homes for West Australians on low-to-medium incomes since 2010."
- Keystart provides low deposit and shared equity residential home loans to eligible West Australians on low-to-medium incomes who are unable to obtain finance from private lenders
- The Request for Tender document can be accessed by calling Keystart's procurement officer on 9338 3126. Visit http://www.keystart.com.au for more information
Treasurer's office - 6552 5700
Housing Minister's office- 6552 6100