How to Refinance Your Investment Property


Have you considered refinancing your investment property? The Australian real estate market is constantly changing, so it’s important to keep your investment up-to-date. Whilst refinancing your investment property is a big decision, it could also be a great way to secure lower interest rates and improve your overall financial situation.

When you refinance your investment property, the process is similar to any other refinancing home loan. You’ll need to compare rates and terms from different lenders and consider the costs. 

However, as an investor, you could gain more benefits. Whether you want to save money, release equity, consolidate debt or tax deductions, refinancing could be the right solution for you.

Before you decide, it’s important to understand the process, potential benefits and risks involved. Hence, finding excellent brokers to help with the process is essential to navigating the market. This is because property investing can be complex, and you need an expert to understand your specific goals.

At Investorfi, we’re here to help you find the right investment property home loan rates for your needs. We have a team of experienced mortgage brokers who can guide you through the process and help you make the best decision for your circumstances.

Reasons to Refinance Your Investment Property

Building wealth through property investing is a popular strategy in Australia. Refinancing your investment property could be a great way to accelerate your wealth-creation journey.

Here are some common reasons why investors choose to refinance:

Take advantage of a lower interest rate

As interest rates fluctuate, many investors and homeowners opt to compare investment property home loan rates and refinance to a lower rate. Doing so will let you save money on your repayments, which you can reinvest into your property portfolio.

Access equity

If your property has increased in value, you could refinance and release equity to use as a deposit for another property investment. This is a popular strategy known as ‘equity financing’ or ‘negative gearing’.

Access cash for other investments or needs

You may also refinance and take out cash for other investments, such as shares or managed funds. Or you may need the money for personal use, such as home renovations or a child’s education.

Reduce your monthly mortgage payment

Reducing monthly payments is a great strategy to free up cash flow. You can refinance a home loan with a longer term. If you have 20 years left on your current 30-year loan, you could refinance to a new 30-year loan. This would reduce your monthly repayments.

Change the terms of your mortgage

You may also want to refinance to change the terms of your mortgage, such as the interest rate type or loan features. For instance, switch from a variable rate to a fixed-rate loan to protect yourself from rising interest rates.

How Soon Can I Refinance My Investment Property?

You can technically refinance your investment property immediately after buying or securing a new home loan, but that might only sometimes be the best decision. Moreover, the decision to refinance your investment property depends on the property’s value and your financial goals. 

Some lenders may require you to wait six months to a year before they allow you to refinance. This is because they need time to assess your loan and property value. Others may charge exit fees or enforce minimum loan terms, so you must check with your current lender before refinancing.

It’s wise to refinance your investment home loan when you owe less than 80% of the property value. By doing so, you can avoid paying lender mortgage insurance. Also, most lenders view borrowers with a lower loan-to-value ratio as less risky.

How Long Should You Hold an Investment Property?

According to research by the NSW Treasury, half of all property owners in NSW will sell their homes within 10 years of purchase. The ‘Holding periods of residential property buyers in NSW’ report found that half of all purchasers sell their dwelling within approximately ten years, 60% sell theirs within 14 years, 70% sell theirs at the 21-year mark, and 80% finally sell up after 35 years. [1]

Whilst there is no set rule or best practice for how long you should hold a property investment, it’s important to consider your goals and financial situation before making a decision. If you’re looking for long-term investment growth, hold your property for 10 years or more. On the other hand, if you’re seeking shorter term capital gains, you may aim to sell after five years or less.

If you’re trying to decide how long to keep your property, here are a few things to consider.

Allow time for an increase in value

It can take time for property values to increase, so you’ll need to be patient if you’re holding property for capital growth. Experts recommend keeping investment property for at least five to seven years before selling.

Be patient

Many property investors are impatient and want to see results quickly. However, it’s important to remember that property investment is a long-term game. The bottom line is that you should hold your property for as long as it suits your investment strategy.

Consider the market

It’s also worth considering the property market when deciding how long to hold your property. If prices are going to fall soon, you may want to sell sooner rather than later. On the other hand, if you believe prices will rise, you may want to hold onto your property for longer.

Is Owning an Investment Property Worth It?

Property investment delivers consistent results over time and outperforms other investment types in the long run. Whilst property values may rise and fall in the short term, over the long term, they have constantly increased.

To make money from property investment, you need to buy one that will increase in value over time. This can be achieved by believing in a growth area or adding value to the property through renovation or development.

Here are some benefits of buying a property:

  • It’s a tangible asset.
  • It can provide positive cash flow.
  • It can appreciate.
  • It offers potential tax benefits.

Start Your Property Investment Journey with Investorfi

Property investing should not worry you. When you’re ready to refinance your investment property, finding a mortgage broker who can get you the best deal is essential. Here at Investorfi, we’re experts in investment property home loans and can help you find the right loan for your needs. We’ll compare hundreds of loans from a range of lenders to find the best refinancing home loan option just for you.

Call us and learn about our services.


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At InvestorFi, our sole purpose is to reinvent the great ‘Australian Dream’. Because we believe it’s every citizen’s right to the security home ownership affords our families and community, not just for today but for generations to come.

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