HomeStart Discharge Authority

Identify Every HomeStart Facility

Match the borrower’s HomeStart loan records to the property being released before preparing the authority. Read the loan agreements alongside recent statements and the title information held by the conveyancer.

Prepare one working list showing each facility’s account number, product name, security property and proposed treatment at settlement. Include additional loans separately, even if the borrower thinks of everything as one home loan.

Look for these components in the actual file:

• The main HomeStart home loan, including any separate loan portions.
• A Shared Equity Option, with its original contribution and agreed equity percentage.
• A Starter Loan used for upfront costs.
• An Advantage Loan or an older additional facility shown in the borrower’s records.

HomeStart’s statement guide says the closing balance excludes interest and other charges. For Breakthrough and Shared Equity loans, it also excludes appreciation. Use those balances to identify accounts, then obtain the actual payout.

Separate a full exit from a request affecting only part of the security or debt. If any facility is to remain, obtain HomeStart’s written instructions for that arrangement before promising a mortgage release. A general discharge request doesn’t establish that HomeStart has agreed to leave another loan unsecured.

Request and Complete the Authority

Download the Notice for Discharge of Mortgage through HomeStart’s official site. The form requires all fields to be completed and every listed borrower to sign and date it.

1. Enter every borrower’s full name and the loan number.
2. Identify the security address, including suburb and postcode.
3. Select the reason: sale, refinance with another lender or paid in full.
4. Add the authorised settlement representative’s name, phone and email, plus the discharge date.
5. Provide the borrower’s current email and postal address. Choose postal delivery if required.
6. Obtain all borrower signatures and return both pages to repaidloans@homestart.com.au.

HomeStart’s loan-management page confirms that email route for refinancing requests. Keep the sent authority with the client’s consent and your list of affected facilities.

The form requires at least three business days’ notice. A valuation adds time, and settlement bookings require correctly completed documents. Lodge early enough to resolve missing signatures or valuation requirements before the intended settlement.

Reconcile the Payout

Compare HomeStart’s dated payout with every facility on your working list. Obtain an explanation for an omitted component before telling the conveyancer the available settlement funds are sufficient.

Shared Equity Option

HomeStart’s Shared Equity Option guidance says it shares gains or losses on sale, but only gains on refinance. The calculation follows the borrower’s agreement and the relevant property value. HomeStart obtains an independent valuation for the payout calculation.

For a hypothetical example, assume a $150,000 Shared Equity Option with an agreed 25% share and a $100,000 increase in the relevant property value. The appreciation share is $25,000, so that component’s payout is $175,000 before any applicable charges. The main home loan remains separate.

Check the quote’s original contribution, equity percentage and valuation basis against the agreement. A dispute about value needs supporting comparable settled sales under HomeStart’s published process. Raise it before settlement funds are finalised.

Starter Loan and Advantage Loan

HomeStart describes the Starter Loan as a loan with a seven-year interest-free term and no required repayments during that term. A period without repayments doesn’t make the balance a grant. Have HomeStart identify the remaining amount and its treatment in this discharge quote.

The Advantage Loan is repaid when the home loan is paid out, the property is sold or the borrower refinances with another lender. Reconcile it separately when it appears in the client’s records.

Changes Before Settlement

The discharge notice says HomeStart suspends direct debits and removes redraw once it calculates the payout. Later transactions affect the settlement amount and can delay settlement.

If settlement moves, request a replacement payout for the revised date. Ask HomeStart what repayments are required during the delay. Reconcile the final quote with the conveyancer’s settlement figures, including HomeStart’s applicable discharge charges and any assistance component.

Confirm the Mortgage Release

Track the request through receipt, readiness for settlement and registration of the mortgage discharge. Sending the authority starts that process.

1. Obtain acknowledgement from the discharges team and confirm which facilities and property the request covers.
2. Resolve outstanding conditions, including missing signatures, any valuation and an agreed payout for the settlement date.
3. Have the conveyancer or incoming lender confirm settlement completion and the amount paid to HomeStart.
4. Obtain HomeStart’s final account documents and confirmation that each intended facility is closed or otherwise dealt with.
5. Ask the conveyancer to confirm registration and retain the title evidence showing HomeStart’s mortgage has been discharged.

A South Australian Register Search provides the title’s current ownership and registered dealings. Use the conveyancer’s resulting title evidence to check the release against the property identified at the start.

If there’s no acknowledgement or an unresolved payout difference, follow up with HomeStart’s discharges team using the submitted authority and loan reference. For existing-customer assistance, HomeStart’s contact page lists 1300 636 878, option 2. Keep the matter open until both the loan treatment and registered mortgage release match the agreed settlement.