How Refinancing Works for First Home Owners
When you refinance, you are technically discharging your existing mortgage and registering a new one on your property title. While this sounds straightforward, several legal steps must happen in the correct sequence for settlement to proceed smoothly.
First, we conduct a fresh title search on your property. This confirms the current registered mortgage, identifies any caveats or encumbrances, and verifies that you remain the registered owner. Title searches cost approximately $20 to $50 depending on your state, and they form the foundation of your refinance documentation.
Stamp Duty on Refinancing
Good news for most first home buyers: refinancing is generally exempt from stamp duty if the borrowers remain the same. However, duty may be payable on any additional loan amount borrowed beyond your original balance. If you are increasing your loan to access equity, we calculate whether duty applies and advise on the amount before you proceed.
Coordinating Two Lenders
Your refinance involves two separate financial institutions. Your outgoing lender must prepare discharge documents and confirm the payout figure. Your incoming lender must prepare new loan documents and arrange funding for settlement day. Both must agree on a settlement time and connect through PEXA.
We act as the central coordinator between both parties. We chase discharge authorities, confirm payout figures, review incoming loan documents, and ensure everyone is ready for the same settlement date. When lenders delay or miscommunicate, we follow up immediately rather than waiting for problems to escalate.
What About Investment Refinancing?
Some first home buyers want to refinance their property into an investment loan, perhaps because they are moving interstate or purchasing a second property. This is where grant and concession rules become critical.
If you received the First Home Owner Grant or stamp duty concessions, you likely agreed to live in the property as your principal place of residence for a minimum period. In Victoria, this is 12 continuous months. Breaking this requirement, even by refinancing to an investment product, can trigger repayment obligations.
We review your original purchase documents, confirm when you settled and when you moved in, and calculate whether you have met your residency obligations. If you have not, we explain your options and the financial implications of proceeding early.
Fixed Fee Refinance Conveyancing
Our refinance conveyancing fee is $1,320 plus disbursements. Disbursements typically include title searches, PEXA fees, and any registration costs. We provide a full breakdown before you engage us, so there are no surprises at settlement.
Unlike some conveyancers who advertise low headline fees then add markups to disbursements, we pass through disbursement costs at the actual amount charged. You pay what we pay.