Understanding internal refinance

An internal refinance is where you close your current home loan facility with us and open a new home loan facility with us.

There are various factors that are taken into consideration that determine if an internal refinance is required, or if a variation can be done on your current home loan facility.

This will be determined when you discuss your required changes with us or your broker.

New home loan accounts and offset accounts (if applicable) will be opened.

You'll be asked to provide details of your repayment election.

Your new account numbers, offset linkage, and structure will be outlined in your Loan Offer and your Settlement Confirmation.

Your home loan accounts will be paid out and closed. 

For home loans with a BSB starting 182, any offset account/s will usually be converted to a transaction account, and you’ll no longer receive any offset interest benefits. You’ll still be able to access your account online, and your account number and any debit card/s will remain the same.

If you want to use the money in your offset to reduce your payout figure, you’ll need to transfer the funds into your home loan.

After your offset is converted to a transaction account, to avoid withholding tax,  you’ll need to add a tax file number (TFN) or exemption via Macquarie Online or the Macquarie Mobile Banking app. Visit Add tax file number or tax exemption to my accounts.

For home loans with a BSB starting 183, any available funds in your offset account will be used to reduce your payout figure and your offset account will be closed.

If you don’t want to use the money in your offset to reduce your payout figure, you’ll need to transfer these out before restrictions are applied.

For more information on the closure process, please visit Discharging your home loan

This is applicable only for offset accounts with a BSB starting with 182.  

Once your offset account has been converted to a transaction account and your new home loan has settled, you can contact us via live chat to convert your transaction account to an offset and link to your new home loan account. Please note the borrower's on your new home loan must match the account holder's of your transaction account.

Please note, this can only be done after your new home loan has settled.

Alternatively, you can you arrange for any available funds in your transaction account to be transferred to your new offset account.