First Home Guarantee refinancing

A loan supported by the First Home Guarantee may be refinanced to another participating lender while retaining the guarantee, subject to conditions. The loan amount generally cannot be increased, the term cannot be extended and ongoing eligibility must be maintained. Moving to a non-participating lender will remove the guarantee.

Lender incentives

Some lenders offer refinancing cashbacks, application-fee waivers or discounted packages. These are commercial offers, not government grants, and should be weighed against the interest rate, annual fees and total loan cost.

Existing-lender discounts

Your current lender may offer a lower rate or waive certain switching costs to retain your business. It is still worth comparing the revised offer with suitable alternatives.

Possible LMI refund

Depending on the insurer, lender and how long the existing loan has been held, you may be able to request a partial refund of previously paid LMI. A new LMI premium may still apply with the new lender.

Investment loan deductions

When an investment loan is refinanced, interest and eligible borrowing costs may remain deductible to the extent the borrowed money continues to be used for an income-producing purpose. Private redraws or additional personal borrowing must be apportioned.