Can I get a personal guarantee released when I refinance?
Sometimes, though it depends far more on the strength of the business than on the refinance itself. A guarantee is released when the old facility is paid out in full and the lender formally discharges it. Whether the new lender asks for one again is the real question. Most commercial lenders want at least a limited director guarantee from the people running the business, so the practical goal is often a smaller or capped guarantee rather than none at all.
How a release actually happens
Paying out the loan is not automatically the end of it. Ask for a written release or deed of discharge from the outgoing lender and check it covers the guarantee, not just the mortgage. Guarantees sometimes survive quietly against other facilities with the same bank, an overdraft or a bank guarantee for a lease that nobody remembered. Your solicitor should review the release before you assume you are out. Keep the signed copy somewhere safe, because it can matter years later.
Reducing a guarantee you cannot remove
Where a new lender insists, there is usually room to negotiate the shape of it. A guarantee capped at a dollar amount, limited to one facility, or supported by a specific asset rather than everything you own is a very different exposure to an unlimited one. Stronger financials, a lower loan to value ratio and a longer track record all improve the argument. Get independent legal advice before signing any guarantee. It is one document worth paying someone to read.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.