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Keystart refinance

Your foot is in the door. Take a step further.

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  1. Why refinance your Keystart home loan?

As a Keystart customer, there are a few reasons why you should refinance to another lender at some point. Namely:

  • To reduce your interest rate
  • To be able to turn your home into an investment property, which is not permissible under Keystart regulations.  
  • To consolidate your debts into one loan, including credit card debt, to get a better overall deal
  • To be able to pay off your loan faster 
  • To save money through reduced repayments 


  1. Which loans can you refinance?

Both Low Deposit Home Loans and Rural Home Loans can be refinanced, and doing so can help you save money on interest payments or pay off your home sooner. 

Unfortunately, there are a few Keystart loans that do not allow for refinancing. These include the Access Home Loan as well as the Aboriginal Home Loan, which both require full ownership to refinance.

Regarding the Shared Ownership Home Loans, only flexible shared ownership home loans can be refinanced. 

  • Low Deposit Home Loan: Yes
  • Rural Home Loan: Yes
  • Access Home Loan: Only full ownership
  • Aboriginal Home Loan: Only full ownership
  • Shared Ownership Home Loan: Only flexible shared ownership home loans
  1. When should you refinance your loan?

Ideally, we would encourage you to refinance as soon as you have built enough equity in your home provided you have done your research into the property market and have sought independent financial advice prior

It is also worthwhile paying attention to the refinancing offers that are available, which may include significant cashback incentives. 

Your Keystart loan is designed to be transitional, and is not intended to be a long-term option. Instead, these loans help get you into a home much faster and with lower up-front costs than traditional mortgages; the trade-off being the high interest rate.  

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  1. How to refinance your loan

Keystart is a unique lender that encourages its borrowers to refinance with other lenders as soon as possible. Once you have your new loan, you should begin seeing a significant reduction in your weekly repayments. The process of refinancing your home loan to another lender is quite simple:

  1. Get professional advice

  2. Complete the Mortgage Discharge Request form

  3. Enjoy your reduced rate

You will want to look at several financing options to ensure the loan terms are right for you. The easiest way to do this is to get a professional to go through this process with you. We are happy to assist you in any way we can; all you need to do is ask.

If you are working with us, our team will be with you every step of the way. We can guide you through various paperwork and simplify the process as much as possible. We will handle all the details and do the difficult leg work for you. That includes locating the right deal for your unique needs.

  1. Keystart refinance questions

To avoid paying thousands of dollars towards LMI, Keystart recommends that you build at least 20% equity prior to refinancing. 

While individual factors influence your savings, here is an example of potential savings. 

You are buying a 500,000 property with a 2% deposit ($10,000). You then take out a Keystart loan of $490,000 at a 4.94% interest rate. 

Your monthly repayment will be $2,612. Over the life of the loan, you will pay $940,495 in total for your $500,000 house. 

Using a standard variable rate (average SVR of the big four: 4.79%) less 0.7%, you have an interest rate of 3.94%  

At the interest rate of 3.94%, the total balance over the life that you will pay is $836,070 at a monthly repayment of $2,322. 

Your final savings is $75,571 in interest, and you pay off your home loan five years and ten months earlier. 

Fees attached when discharging a mortgage are a standard practice for lenders. To learn your total payout figure, you can call Keystart on their customer hotline (1-300-578-278), email them at, or get a professional to do this for you.

Additionally, you must complete and submit Keystarts Discharge of Mortgage Authority form. Your request will be processed within ten business days.

If the ownership structure is flexible, you may proceed with refinancing. However, if your structure is not flexible, refinancing is not permitted.

Your equity will naturally increase as your property value goes up. However, if you’d like to speed up the process you may be able to make extra repayments to increase your equity. 

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