GE Money Home Lending Australia, which is exiting the mortgage market, said it would waive the deferred administration fee, or exit fee, for 12 months for those home loan borrowers wanting to refinance their home loans through Aussie.

Borrowers with a GE Money variable home loan originated through third parties, including mortgage brokers and aggregators, would have the fee waived for three months from March 1, GE Money said.

GE Money Home Lending Australia said it would not cut interest rates on variable home loans because of its ''extraordinarily high cost of funds for home loans''.

The lender cites the continued volatility in wholesale debt markets, as well as its lack of access to the Federal Government's wholesale funding guarantee, enjoyed by the big four banks.

Spokesman Geoff Lynch said the company sourced all of its funding from debt markets in the United States.

The move comes after the Reserve Bank of Australia's 1 percentage point cut to the official cash rate to 3.25 per cent earlier this month, which the big four banks passed on in full to their home loan customers.

GE Money Australia and New Zealand is a unit of Connecticut-based General Electric's struggling GE Capital finance division that makes loans to consumers and businesses.

GE Money Australia managing director of home lending Lisa Davis said the rising cost of term funding was the main reason the lender decided to exit Australia's mortgage market last October,

GE Money's Wizard Home Loans subsidiary was sold to John Symond's Aussie Home Loans and Commonwealth Bank of Australia on Christmas eve, after seven months of talks with several parties.

The deal will be completed on February 27, with Aussie taking GE Money-owned Wizard's brand and franchise network for an undisclosed amount.