Proven Tips to Refinance Multiple Properties

Refinancing Multiple Properties: A Portfolio Review Approach

Refinancing more than one property requires a different approach to refinancing a single home. Lenders assess your total serviceability across all holdings, which means your capacity to service debt is calculated differently when you carry multiple mortgages. The priority shifts from finding the lowest rate on one loan to structuring your entire portfolio in a way that improves cashflow, reduces costs, and positions you to access equity when needed.

Consider an investor in Mulgrave with three properties: their owner-occupied home plus two investment properties in nearby suburbs. Each loan was taken out at different times with different lenders, and the rates now vary between 5.8% and 6.4%. Reviewing the portfolio as a whole reveals that consolidating two of the loans with one lender could reduce monthly repayments by several hundred dollars and simplify reporting for tax purposes. That outcome only becomes visible when you treat the portfolio as a single structure rather than three separate decisions.

When Does It Make Sense to Refinance Your Portfolio

Refinancing makes sense when the total cost saved across your properties outweighs the cost of exiting your current loans. If one or more of your loans is coming off a fixed rate period, that becomes a natural trigger point because break costs are removed. Similarly, if your circumstances have changed and you now need access to equity for further investment or renovations, a portfolio refinance can unlock funds that would otherwise remain tied up.

Mulgrave has seen solid capital growth over recent years, supported by proximity to Monash University, the Monash Freeway, and Waverley Gardens Shopping Centre. Investors who purchased in the area several years ago may now be sitting on significant equity across their holdings. A loan review can quantify how much equity is available and whether it can be accessed at a serviceable rate without over-leveraging the portfolio.

Structuring Loans Across Multiple Properties

You do not need to hold all your loans with the same lender, but there are cases where consolidation makes sense. Consolidating into one lender can streamline your paperwork, reduce annual fees, and improve your negotiating position for rate discounts. However, keeping loans split across lenders can provide flexibility if you want to sell one property without triggering a discharge across the entire portfolio.

The decision depends on your individual cashflow, the loan features you need, and whether you plan to acquire more properties. An investor with two properties might benefit from holding one loan with an offset account to park rental income and another on a low-rate variable product to minimise interest costs. Structuring loans this way allows you to direct surplus cashflow where it has the most impact.

Serviceability When You Hold Multiple Mortgages

Serviceability becomes more complex when you hold multiple properties because lenders apply different treatment to rental income. Most lenders will only recognise 70% to 80% of your gross rental income when calculating serviceability, which can limit how much you can borrow or refinance. If you are currently with a lender that applies a lower rental income assessment, switching to one that treats rental income more favourably can increase your borrowing capacity without changing your actual income.

In our experience, investors who have accumulated properties over several years without reviewing their loan structure often find they are paying more than necessary. Lenders update their policies regularly, and a lender that offered strong rates three years ago may no longer be the most suitable option today. A loan review involves comparing your current position against what is available now, not what was available when you first borrowed.

Using Equity Across Your Portfolio

Equity can be accessed from one property to fund the deposit on another or to renovate an existing holding. When you refinance multiple properties, you can structure the loans so that equity is drawn from the property with the lowest loan-to-value ratio or the one that offers the most tax-effective outcome. This requires coordination across your portfolio rather than treating each property in isolation.

For example, an investor might own their home in Mulgrave with a loan-to-value ratio of 50% and an investment property in Wheelers Hill with a ratio of 75%. If they want to access equity to purchase another investment property, it makes more sense to draw from the Mulgrave home loan where they have more available equity and lower risk in the eyes of the lender. That approach keeps the investment property loans at a manageable level and maintains serviceability for future acquisitions.

Fixed Rate Expiry Across Multiple Loans

If you fixed multiple loans during the low-rate period, you may now be facing expiry dates across different properties at different times. Each expiry is an opportunity to reassess whether that loan should move to a variable rate, refix, or be refinanced to another lender. Treating each expiry as an isolated event can result in missed opportunities to renegotiate your overall position.

When one loan comes off a fixed rate, it may be worth reviewing the entire portfolio to see whether a broader restructure makes sense. Refinancing only the loan that has expired might deliver a small saving, but refinancing two or three loans at the same time could deliver a larger reduction in total interest costs and consolidate your repayment schedule.

Offset Accounts and Redraw Across Investment Properties

Offset accounts are particularly valuable for investment properties because they allow you to reduce interest costs without making additional repayments that would otherwise reduce your tax-deductible debt. If you hold multiple investment properties, structuring your loans so that each has an offset account allows you to park rental income and other funds in a way that reduces the interest charged without affecting your deductions.

Redraw facilities can serve a similar purpose, but they come with more restrictions. Lenders can change redraw terms, and accessing funds from redraw is not always immediate. In a portfolio context, offset accounts provide more control and flexibility, particularly if you need to move funds between properties or access cash for maintenance or further investment.

How the Refinance Process Works for Multiple Properties

Refinancing multiple properties involves submitting a single application that covers all the loans you want to move. The lender will conduct property valuations on each holding, assess your total income and liabilities, and calculate your serviceability based on the combined loan amount. The process takes longer than refinancing a single property because there is more documentation to review and more security to assess.

You will need to provide recent rental statements for each investment property, current loan statements showing balances and repayment history, and evidence of income from all sources. If your portfolio includes properties in different names or ownership structures, the lender will need to assess each structure separately. Working with a mortgage broker who understands portfolio refinancing can reduce the time it takes to gather the right documents and submit a complete application.

Call one of our team or book an appointment at a time that works for you to discuss how refinancing your portfolio could reduce costs and improve your cashflow.

Frequently Asked Questions