Investment Property Refinance: Is Your Loan Still Working for You?

When was the last time you reviewed your investment loan? If you're like most property investors, you probably keep an eye on your property's value, rental income and yield.

But many investors haven't considered the loan behind their investment for years. If you consider yourself a savvy investor, you should take another look.

Helping property investors make sure their finance is working as hard as their investments.

The lending landscape in Australia has shifted considerably over the past few years. Interest rates have risen, lenders have changed their pricing, borrowing policies continue to evolve, and new lenders have entered the market. Concurrently, ongoing discussion around tax and housing policy has prompted many investors to take a fresh look at their portfolios.

Some have decided to sell. Others are choosing to hold quality assets for the long term, but they're making sure their finance is working as efficiently as possible. An investment property refinance can make a huge difference.

Refinancing isn't a sign you're struggling

Most experienced investors don't refinance when they're facing financial difficulty. The best time of course, is when you're not.

Reviewing lending every couple of years, (though I keep a close eye on your rate too) means knowing even small changes can have a meaningful impact on long-term returns.

A lower interest rate is one benefit, but it's rarely the only one. A refinance can help you reduce your repayments, improve cash flow, access equity for other investments, consolidate lending or move to a loan that better suits your current strategy. Sometimes the answer is to refinance. Or we may be able to negotiate a better deal with your existing lender...either way, it's worth knowing your options.

Your bank doesn't reward loyalty

Many lenders reserve their most competitive offers for attracting new customers rather than rewarding existing ones. If you've had the same investment loan for several years, there's almost no doubt - your loan is no longer as competitive as it once was. Let's look at that.

Small savings can have a big impact

Saving a 0.25% on an investment loan mightn't sound exciting, but over the life of a loan it can translate into thousands of dollars that stay in your pocket - instead of the bank's.

I've worked with investors who have significantly reduced their annual interest costs just by reviewing their lending and making a few strategic changes via the loan.

A review costs nothing, but could save you plenty

An investment property refinance mightn't be to procure the lowest advertised rate.

It's vital your lending still fits your goals.

If you haven't reviewed your investment loan in the past year or two, now is a good time to do it. You may find everything is already working exactly as it should. Or you might discover there are significant savings or opportunities you've been missing. Either way, you'll know you're making an informed decision rather than assuming your current loan is still competitive.

If you'd like an honest review of your investment loan, I'd be happy to take a look. If there's an opportunity to improve your position, I'll tell you. If your current loan is already the right fit, I'll tell you that too.

*Not financial advice