Deed of Variation
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Deed of Variation is a legal document that changes specific terms of an existing agreement, such as a loan, lease, guarantee or trust deed, while leaving the rest of the agreement in place. It is commonly used to extend a loan term, add or release a guarantor, or vary a discretionary trust deed to add a beneficiary, without a full resettlement that could trigger CGT or stamp duty. It differs from a deed of consent, which approves a new arrangement rather than amending an existing one.
Why Deed of Variation Matters
A deed of variation lets parties change a deal cleanly without starting over, which matters when terms or security shift.
- Amends an existing agreement rather than replacing it
- Common for changing loan terms, security or guarantees
- Used to vary a trust deed or a lease
- Avoids a resettlement that can have CGT and duty consequences
- Signed by the same parties to the original deed
Common Features of Deed of Variation
- References and amends the original agreement
- Sets out exactly which terms change
- Signed and dated by the relevant parties
- May need lender or guarantor agreement
- Often prepared by a solicitor
Official reference: asic.gov.au
What is a deed of variation?
A document that changes specific terms of an existing agreement, such as a loan or trust deed, without replacing it.
When is a deed of variation used in lending?
To change a loan amount, repayment, security or guarantee without redrawing the whole contract.
Deed of variation vs new contract?
A variation keeps the original agreement and amends it; a new contract replaces it entirely.
Can a trust deed be varied?
Yes, where the deed allows it, though care is taken to avoid a resettlement of the trust that could trigger tax.
Is a deed of variation the same as a deed of consent?
No. A deed of consent approves a new arrangement; a variation changes an existing one.