When to Refinance Multiple Properties and Cut Loan Costs

Refinancing more than one property makes sense when the combined saving is larger than the combined cost of switching. That is the test for a Berowra homeowner with an investment property, and it is worth running across every loan at once.

Berowra sits in Hornsby Shire, close to bushland and Berowra Waters. Some owners hold a family home and one or more investment properties, sometimes with different lenders, rates and loan terms. Reviewing them together shows you where you may be paying too much interest and where a change would add little.

When Does Refinancing Multiple Properties Make Sense?

It makes sense when a lower rate or more suitable loan features outweigh the fees on each loan you move. Each loan is assessed on its own costs, so one may be worth switching while another is worth leaving alone.

The common triggers are a fixed rate ending, a lender that no longer offers competitive pricing on a loan you have held for years, or a change in your plans, such as buying another property. A loan health check compares each loan's rate, fees and features side by side. ASIC's guidance says a switch should deliver overall cost savings that outweigh any lost benefits, or meet your goals in a way your current loan does not. That includes any broker fees.

The trade-off is cost. Switching can involve application fees, discharge fees and, if you have less than 20 per cent equity, lenders mortgage insurance. Stretching a loan over a longer term can lower repayments but means more interest over time.

Fixed Rate Expiry and Break Fees Across Two Loans

If a fixed rate is ending, the best time to refinance is usually close to expiry, because a break fee can apply if you leave a fixed loan early. Break fees do not apply to variable loans.

With two or more properties, the expiry dates often differ. You might have one loan rolling onto a variable rate soon and another fixed for another year. Moving the first loan now and waiting on the second can avoid a break fee. Our fixed rate expiry page explains what to check before your fixed period ends.

A lender cannot charge an exit fee when you close a home or residential investment loan taken out on or after 1 July 2011. Break fees and discharge fees are treated differently and can still apply, so ask each lender for a payout figure before you commit.

Worked Example: Two Loans, One Review

Consider a Berowra owner with a $600,000 home loan and a $400,000 investment loan, both at the illustrative rate of 6.75% p.a. Interest on $1,000,000 at that rate is $67,500 a year.

Their investment loan is coming off its fixed rate, and the home loan has no offset account. The solution is to refinance both loans, keeping them as separate loans so the investment debt stays clear. The home loan moves to a product with an offset account, and the investment loan goes to a lender with a lower rate.

Say the new rate on both loans is 6.25% p.a., half a percentage point lower than the illustrative rate. Annual interest on the same $1,000,000 falls to $62,500, which is $5,000 lower in the first year. The home loan accounts for $3,000 of that and the investment loan for $2,000.

That saving is before switching costs, so the owner compares it with discharge and application fees on both loans before proceeding. If the fees add up to less than a year or two of savings, the move is worth considering. If they do not, staying put or switching only one loan may be the sounder choice.

Releasing Equity Across Properties and the Tax Side

Refinancing to release equity means borrowing more than you owe now, so the lender treats it as new debt and assesses it in full. The tax treatment of the interest depends on what you use the money for.

The ATO says interest is deductible only on money used to produce income. Borrowing against your home to put a deposit on a rental can be deductible. Borrowing against it for a holiday or a car is not. If one refinanced loan covers both uses, the interest is apportioned, and that ratio generally applies for the life of the loan. Borrowing expenses on a refinance, such as lender fees or broker fees, may also be partly deductible over time when they relate to the investment portion. Speak to your accountant before you act, as the outcome depends on your circumstances.

Keeping separate loan splits for different purposes, and keeping records of how each amount was used, makes tax time cleaner. Our investment loans page covers how lenders view equity used for the next purchase.

Will Lenders Approve More Than One Loan?

A lender will generally approve you only if your income can support the total debt at an assessment rate above the loan rate. For ADIs, APRA requires a buffer of at least 3 percentage points on new borrowers, and APRA confirmed in May 2026 that it would stay at 3 points. Lenders can approve limited exceptions in some refinance cases, and non-ADI lenders are not bound by the APRA buffer.

So a loan you have managed comfortably for years can still fail a new lender's assessment. Your borrowing capacity may be lower than expected if you have several loans, other debts or reduced equity. APRA has noted that lenders can consider a borrower's repayment history in some refinance cases, but approval is not assured. If a new lender says no, you may still have options with your current lender, such as an internal refinance or a rate review.

If you want local advice, our Berowra mortgage broker team can review each loan and tell you which are worth moving and which are not. For a conversation about refinancing your properties, call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions