Search begins for Keystart adviser

The state government has begun the tender process to find a lead financial adviser as it plans to move ahead with divesting a portion of Keystart’s loan book to the private sector.

Treasurer Mike Nahan said the search for a financial adviser was the first step in selling off part of the affordable home loan program, which is aimed at reducing Keystart’s reliance on state government borrowings.

“It is important to note that there will be no change to Keystart’s clients because it will be business as usual from a service delivery point of view,” he said.

The Department of Treasury said that, once the appointment is made, it would work with the financial adviser and Keystart to develop a solution to ensure there would be no impact to Keystart’s existing interest rate setting policy, lending eligibility criteria or loan assessment process.

The lead financial adviser will then assist Keystart in conducting a competitive process to find a private financing partner.

Housing Minister Colin 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.

“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 role in this strategy, which has achieved more than 20,000 affordable homes for Western Australians on low-to-medium incomes since 2010.”