Top Strategies to Refinance Multiple Properties Wisely

Refinancing more than one property works best when you look at all your loans as one portfolio, not as separate decisions.

For Caulfield families and investors, that means checking how each loan, each property and each lender relationship affects the others. The aim is a structure that supports your household today and your growth plans later. Below are the strategies that matter most.

How Do You Refinance Multiple Properties at Once?

You refinance multiple properties by reviewing every loan together, then deciding which loans to move, which to keep and how the security is set up. Each lender will assess your total debt, income and each property's value, so the order of your steps matters.

A broker can compare lenders for the whole portfolio, not just one loan. A loan health check is a sensible first step. It looks at your current interest rate, fees, features and loan amount on each property so you can see where your money is going.

Your borrowing capacity also needs a fresh look. Every extra loan counts against you, so it is worth knowing where you stand before you lodge a refinance application.

Should You Keep Your Loans With One Lender or Split Them?

Keeping loans with one lender can make your paperwork tidier, while splitting them across lenders can give you more flexibility. Each approach has a trade-off.

When loans are tied together under one lender, the lender may hold your properties as joint security. That can limit your options if you later want to sell one property or release equity from another. Splitting loans can reduce that tie, but you may deal with several lenders, several sets of fees and more reporting at tax time.

A good question to ask is: if I sold one property in five years, how would this structure handle it? Your broker can map this out before you commit.

Refinance to a Lower Rate: What to Check Before Switching

A lower interest rate can reduce your repayments, but only if the savings outweigh the switching costs. Check discharge fees, any application fees and any break costs before you move.

If you are coming off a fixed rate, the fixed rate expiry stage is a natural time to review your options. Lenders often move customers onto a standard variable rate when a fixed term ends, and that rate may be higher than what is available elsewhere, depending on the lender and product. Ending a fixed term early can trigger break costs, so confirm the figure with your lender first.

As a general guide, compare the full cost of each loan, including fees, and not only the headline rate. Online calculators are a useful way to test the numbers.

A Scenario: Two Properties, One Review

Consider a Caulfield couple with a home and one investment unit. Their home loan sits on a variable rate. Their investment loan has just come off a fixed term and rolled onto a higher revert rate.

They ask a broker to review both loans together. For illustration, say the investment loan balance is $500,000. At an illustrative rate of 6.75% p.a. over 30 years, the repayment is about $3,243 per month on a principal and interest basis. If the lender's revert rate was 0.50% higher, at 7.25% p.a., the repayment on the same balance and term would be about $3,411 per month. That is a difference of roughly $168 per month, or about $2,016 a year.

The broker moves the investment loan to a lender offering the lower rate, and keeps the home loan where it is because its rate and offset account already suit the family. The couple pay a discharge fee and some switching costs, which they weigh against the yearly saving before going ahead. The outcome is lower monthly repayments on one loan, and no unnecessary changes to the other. The figures here are illustrative only and your own result will depend on your lender, loan amount and circumstances.

Releasing Equity to Buy Your Next Property

You may be able to release equity by borrowing against the value your properties have built up, but only if a lender approves the application. The lender will complete a valuation and assess whether you can afford the higher repayments. How much you can access depends on that lender's loan-to-value limit and your borrowing capacity. The extra funds can go toward a deposit and costs on your next purchase.

Lenders generally limit how much you can borrow compared with a property's value, and the limit depends on the lender and your situation. Borrowing more also means a higher loan amount and higher repayments, so your cashflow must still work if rates rise. The RBA cash rate is 4.85% p.a., and your loan rate may move with it if you are on a variable rate.

If you plan to use equity for property investing, our investment loans team can help you structure the new loan so it sits clearly apart from your home loan. Separate loan accounts help keep your records clear, which your accountant will appreciate. Tax outcomes depend on your situation, so speak with your accountant before making decisions.

Features That Improve Cashflow Across Several Loans

An offset account can reduce the interest you pay by sitting against your loan balance, which helps cashflow without locking your money away. The trade-off is that loans with offset accounts can carry higher fees or rates than basic loans.

A redraw facility lets you access extra repayments you have made, though some lenders can limit or restrict redraws. For a family, keeping a cash buffer in an offset on the home loan can be a practical safety net. Make sure the features you pay for are features you will use.

Local Support for Caulfield Property Owners

Caulfield is part of the City of Glen Eira, so our Glen Eira mortgage broker page is a helpful resource for local owners. You can also read more about our Caulfield mortgage broker service and our general refinancing process.

Whether you own two properties or five, we put your family's goals first. We will tell you plainly if staying put is the right choice. Call one of our team or book an appointment at a time that works for you, and we will review your loans together.

Frequently Asked Questions