In some situations, the eligible person is not the registered owner of the land and dwelling-house for which assistance is sought. It is possible for the eligible person to assign his/her entitlement to either the provider of the accommodation, or to someone else who is assisting the eligible person to acquire that accommodation.
The usual circumstances giving rise to Assignment are:
Retirement Villages, where no separate Title exists for individual units, and
Granny Flats, where the eligible person may be provided accommodation (eg by a family member) in a detached unit or a room within the existing home.
Assignment may also occur where a third party is willing to provide alternative suitable security for the loan, so that the eligible person’s accommodation needs are met. It is important to note that neither DSH nor Westpac Banking Corporation are involved in any private arrangements between the assignor and assignee.
A number of issues can arise during Assignment, some depending on the individual circumstances of the proposal:
An Assignee takes full responsibility for repayment of the loan, and the provision of suitable security to the Bank.
Usual Bank Fees & Lending Criteria apply to the Assignee’s loan application.
Retirement Village Companies are generally unwilling to accept Assignment.
The DSH interest subsidy can be cancelled for a number of reasons. The remaining loan balance would revert to the interest rate then applicable to similar Bank loans.
The eligible person needs to apply for both a Certificate of Entitlement and a Certificate of Assignment. The front page of the Assignment application form should have all relevant details completed by the eligible person as the ‘Assignor’. The ‘Assignee’ who takes responsibility for the loan completes the back page of the Assignment application form.
All relevant questions on both application forms must be answered and the forms must be signed.
If the DSH loan application is approved by Westpac, the Bank will secure the loan (generally by mortgage) against suitable security provided by the Assignee. Westpac will determine the actual amount that can be borrowed. The Assignee will have to meet lending criteria that include the ability to repay the loan and the equity in property or other assets.
The Bank can advise on applicable fees and charges that may apply to DSH loans or Westpac loans.
