If you own more than one property in Cheltenham or nearby suburbs like Mentone or Beaumaris, refinancing all of them at once can save you thousands in interest and streamline your repayments.
You don't need to refinance every loan at the same time, but doing so often makes sense if your circumstances have changed or you've been stuck on higher rates since your fixed rate period ended. The process involves coordinating valuations, applications, and settlement across multiple properties, which sounds complicated but becomes straightforward once you know what to expect.
Why refinance more than one property at the same time
Refinancing multiple properties together lets you negotiate from a stronger position and often access lower rates or waived fees. When you approach a lender with a larger total loan amount across several properties, you're a more valuable customer, and that can translate into pricing that wouldn't be available if you refinanced one property at a time.
Consider a scenario where you own your home in Cheltenham and an investment property in Parkdale. Both loans are sitting on rates that haven't been reviewed in years. Refinancing them together means one application process, one set of valuations, and one settlement period. You also avoid the situation where you refinance one property and then wait months to tackle the next, during which time rates or your circumstances might change.
In our experience, property owners with multiple loans often don't realise how much equity they've built across their portfolio. Refinancing gives you a clear picture of where you stand and whether you can access that equity to fund renovations, buy another property, or consolidate other debts into your mortgage.
What happens during the refinance process for multiple properties
The lender will assess all your properties at the same time, which means they'll look at your total income, total debts, and the combined value of your properties. Each property will need a valuation, and the lender will calculate your loan-to-value ratio (LVR) across the portfolio. If your combined LVR is low enough, you might qualify for lower rates or the ability to access equity without needing lender's mortgage insurance.
The application itself works like a single refinance but with more documentation. You'll need to provide income verification, details of your current loans, and information about each property. The lender will assess your borrowing capacity based on your ability to service all the loans, which includes rental income if any of the properties are investments.
Settlement is where timing matters. You'll want all the loans to settle on or around the same date so you're not juggling repayments on both the old and new loans for any longer than necessary. Most brokers will coordinate this with the lender and your conveyancer to keep everything aligned.
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Releasing equity across multiple properties
One of the main reasons to refinance multiple properties is to access equity that's built up over time. If you own a home in Cheltenham and an investment property elsewhere, you might have significant equity in both. Refinancing lets you pull that equity out and use it for whatever you need, whether that's buying another property, funding a renovation, or consolidating debts.
The lender will look at the total value of your properties minus what you owe. If that number is high enough, you can increase your loan amount and take the difference as cash. Keep in mind that accessing equity increases your loan amount, so your repayments will go up unless you also secure a lower rate that offsets the increase.
As an example, someone who owns a property near Cheltenham Station and another in Highett might have equity in both. Refinancing allows them to access that equity in one go rather than applying for separate top-ups on each loan. This approach is common for investors looking to expand their portfolio or homeowners planning a renovation on their primary residence.
Fixed rate periods ending on multiple properties
If you have more than one property and the fixed rate period is ending on all of them around the same time, refinancing makes even more sense. When you come off a fixed rate, you usually roll onto your lender's variable rate, which is often higher than what you'd get by switching to a new lender.
Refinancing before those fixed rates expire means you can lock in a new rate across all your properties without the rush. Lenders typically let you apply a few months before your fixed rate ends, so you can settle the new loans right as the old ones expire. That way, you avoid break costs and don't end up on a revert rate even temporarily.
Cheltenham has a mix of owner-occupiers and investors, and many bought or refinanced a few years back when fixed rates were low. As those fixed terms end, refinancing the whole portfolio at once avoids the stop-start process of dealing with one property at a time and gives you a clearer picture of your overall interest costs.
How rental income affects your refinance application
If one or more of your properties are investment loans, the lender will factor in rental income when they assess your application. Most lenders only count a percentage of the rent, usually around 80%, to account for vacancy periods and maintenance costs. That rental income can improve your borrowing capacity and make it easier to refinance all your loans at once.
The lender will want to see lease agreements and evidence that the rent is being paid. If the property is currently vacant, they might not count any rental income at all, which can affect how much you can borrow or whether you qualify for certain rates.
In a scenario where you own your home in Cheltenham and rent out a unit in Mentone, the rental income from the unit will be included in your application. If the rent is steady and well-documented, it strengthens your position and might let you access equity or secure a lower rate across both properties.
Consolidating into one lender or splitting across multiple lenders
You can refinance all your properties with one lender or split them across different lenders depending on what gives you the lowest overall cost and the features you need. Keeping everything with one lender can simplify your repayments and sometimes unlock portfolio pricing, but splitting your loans might get you lower rates or access to features like offset accounts or redraw that one lender doesn't offer on all products.
Some lenders have limits on how much they'll lend to one borrower, so if your total loan amount is high, you might need to split across two lenders anyway. A broker can show you what's possible and where you'll get the most value based on your specific situation.
For Cheltenham residents with properties spread across the Bayside area, a home loan health check can clarify whether consolidating or splitting makes more sense. It depends on your total debt, the equity in each property, and what you want from your loans in terms of flexibility and cost.
When refinancing all at once doesn't make sense
There are times when refinancing one property first and leaving the others for later is the smarter move. If one loan has a fixed rate that doesn't expire for another year but the others are already on variable rates, you might refinance the variable ones now and deal with the fixed loan when the time comes. Breaking a fixed rate early can cost thousands, and unless the savings from a lower rate outweigh the break costs, it's usually not worth it.
Another situation is when one property has very little equity and a high LVR. Refinancing that property might require lender's mortgage insurance, which adds to the cost. In that case, you might refinance the properties with lower LVRs now and leave the high-LVR property until you've paid it down further or the property value has increased.
Call one of our team or book an appointment at a time that works for you. We'll walk through your current loans, show you what refinancing all your properties could save, and put together a plan that fits your situation.
Frequently Asked Questions
Can I refinance multiple properties at the same time?
Yes, you can refinance all your properties at once through a single application process. The lender will assess your total income, debts, and the combined value of your properties to determine your rates and borrowing capacity.
Do I have to use the same lender for all my properties when refinancing?
No, you can split your properties across different lenders if that gives you lower rates or features you need. Some borrowers consolidate with one lender for simplicity, while others split to access portfolio pricing or specific loan features.
How does rental income affect refinancing multiple properties?
Lenders typically count around 80% of rental income when assessing your borrowing capacity for investment properties. You'll need to provide lease agreements and evidence of rent payments to support your application.
What happens if my fixed rate periods end at different times?
You can refinance properties with expiring fixed rates now and leave others until later. Breaking a fixed rate early often involves break costs, so it's usually only worthwhile if the savings from a lower rate outweigh those costs.
Can I access equity from multiple properties in one refinance?
Yes, refinancing multiple properties at once lets you access equity from all of them in a single transaction. The lender will calculate your total equity across the portfolio and determine how much you can access based on your LVR and borrowing capacity.
