Understanding the Basics of Refinancing Multiple Properties

Refinancing More Than One Property at Once

You can refinance multiple properties at the same time, either by consolidating them under one lender or restructuring them individually to access lower rates or unlock equity. The approach you take depends on what you're trying to achieve and how your properties are currently structured.

When you hold more than one property, a loan health check becomes especially valuable. You might have a home loan on your owner-occupied property, an investment loan secured against a rental, and perhaps a granny flat loan on a third property. Each loan might be with a different lender, on different rates, with different features. Refinancing them all together allows you to consolidate or renegotiate terms, but it also introduces complexity around valuations, loan-to-value ratios, and serviceability across the entire portfolio.

Consider a property owner who has three properties: an owner-occupied home, an investment property, and a granny flat on a separate block. Each loan is with a different lender. One loan is stuck on a high variable rate following a fixed rate expiry, another has limited offset features, and the third has a redraw facility that doesn't suit the owner's cashflow needs. Refinancing all three at once allowed them to consolidate under one lender at a lower rate, set up offset accounts against the owner-occupied and granny flat loans, and structure the investment loan to maximise tax-deductible interest. The outcome was lower monthly repayments, improved cashflow, and a clearer picture of the overall portfolio performance.

Why You Might Refinance a Property Portfolio

The most common reason is to reduce overall interest costs by moving to a lender offering lower rates across all loans. If even one of your properties is on a rate that's significantly higher than what's currently available, refinancing that loan alone could save thousands in interest over the life of the loan. When you refinance multiple properties together, you can often negotiate better terms due to the size of the portfolio.

Another reason is to access equity. If one or more of your properties has increased in value, refinancing allows you to release equity to fund further investment, such as adding a granny flat to an existing property or purchasing another investment property. This is particularly relevant for investors looking to expand their portfolio without selling assets. A granny flat as an investment can be funded by accessing equity from your existing properties, provided your serviceability supports the additional loan amount.

You might also refinance to consolidate debt or improve loan features. If you have personal loans, car loans, or credit card debt alongside your property loans, consolidating everything into your mortgage can reduce your overall interest rate and simplify repayments. Alternatively, you might want to switch from redraw to offset, or move from fixed to variable to gain more flexibility.

How Lenders Assess Multiple Properties

Lenders assess your entire portfolio as part of the refinance application, not just the individual properties you want to refinance. They calculate your total loan exposure, your combined rental income if applicable, and your overall serviceability. This means that even if you only want to refinance one or two properties, the lender will still consider your other debts and assets when determining how much they're willing to lend.

Serviceability is calculated using your income, existing debts, living expenses, and rental income from investment properties. Most lenders will only count around 80% of rental income to account for vacancy periods and maintenance costs. If you're refinancing to access equity, the lender will also want to know what you're using the funds for. Equity used for investment purposes is generally viewed more favourably than equity used for personal expenses.

Property valuations play a significant role. When you refinance, the lender will require a valuation for each property you're refinancing. If property values in your area have increased, you'll have more equity to work with and a lower loan-to-value ratio, which can help you access lower rates. If values have remained flat or declined, you may have less equity than expected, which can limit your borrowing capacity or mean you need to pay lender's mortgage insurance.

Consolidating Under One Lender or Keeping Loans Separate

Consolidating all your loans under one lender can simplify your finances and reduce the number of accounts you need to manage. It can also give you more negotiating power, as lenders are often willing to offer lower rates or waive fees to secure a larger portfolio. A single lender relationship can also make it easier to access equity in the future, as the lender already has a full picture of your financial position.

However, keeping loans separate can sometimes be the right move. If one of your properties is on a particularly low rate or has features that suit your needs, refinancing it might not make sense. You can also mix and match lenders to take advantage of different strengths, such as one lender's offset account features and another's low variable rate. This approach requires more ongoing management, but it can deliver outcomes that a single-lender structure can't.

In our experience, investors with three or more properties often benefit from a mix. They might consolidate two properties under one lender to access a lower rate and keep a third property with a different lender that offers superior offset or redraw features. The decision depends on your priorities, whether that's reducing interest costs, improving cashflow, or maintaining flexibility.

What It Costs to Refinance Multiple Properties

Refinancing costs include valuation fees, application fees, discharge fees from your current lender, and potentially settlement fees with the new lender. When you refinance multiple properties, these costs multiply. Valuation fees alone can range from $200 to $600 per property, depending on location and property type. Discharge fees are typically around $300 to $400 per loan, and application fees vary by lender but can be several hundred dollars.

Some lenders will waive application fees or contribute towards valuation costs if you're refinancing a large portfolio, so it's worth negotiating. You should also factor in the potential for break costs if you're coming off a fixed rate period early. Break costs are calculated based on the difference between your fixed rate and the current wholesale rate, and they can be substantial if rates have dropped since you locked in your fixed term.

Before committing to a refinance, calculate whether the interest savings outweigh the upfront costs. If you're refinancing to access a lower rate, work out how long it will take for the monthly savings to cover the fees. If you're refinancing to access equity, consider whether the additional loan amount and interest costs are justified by the return on your investment.

Timing and the Refinance Process for Multiple Properties

The refinance process for multiple properties takes longer than refinancing a single property. You'll need to provide documentation for each loan, each property, and your overall financial position. This includes loan statements, property valuations, rental income evidence if applicable, and proof of income and expenses. Lenders will also conduct a credit check and assess your serviceability based on your entire portfolio.

Once you submit your application, the lender will arrange valuations and assess each property individually. This can take several weeks, depending on the lender's workload and the availability of valuers in your area. If any of the valuations come back lower than expected, you may need to adjust your loan amount or contribute additional funds to meet the lender's loan-to-value ratio requirements.

Settlement is the final step, and when you're refinancing multiple properties, it needs to be coordinated carefully. Each property will have its own settlement date, and you'll need to ensure that funds are available to cover any shortfalls or costs. Working with a broker who understands portfolio refinancing can help you manage the timing and avoid delays.

When Refinancing Multiple Properties Makes Sense

Refinancing makes sense when the interest savings, equity access, or improved loan features outweigh the costs and effort involved. If you're on a high variable rate following a fixed rate expiry, or if you've been with the same lender for several years without reviewing your loans, there's a strong chance you could save money by refinancing.

It also makes sense if you're planning to expand your portfolio and need to access equity. A portfolio refinance allows you to restructure your loans to maximise borrowing capacity and set up your finances for the next investment. If you're considering adding a granny flat or purchasing another property, refinancing existing loans to access equity can provide the deposit and construction funds you need. Granny flat finance often requires a deposit of at least 10%, and releasing equity from your existing properties is one of the most common ways to fund it.

Refinancing also makes sense if your financial situation has improved. If your income has increased, your rental properties are performing well, or you've paid down debt, you may now qualify for lower rates or higher loan amounts than you did when you first took out your loans. A loan review can identify opportunities to restructure your portfolio to reflect your current position.

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