Everything You Need to Know About Refinancing Multiple Properties

If you own more than one property in Riverside or across Tasmania, refinancing all your loans together can cut your interest costs and simplify your repayments into a single structure.

Many investors hold multiple properties on separate loans, often set up at different times with different lenders. As your portfolio grows, those loans can end up on different rates, different terms, and different fee structures. Refinancing lets you consolidate those arrangements, move to a lower interest rate, or release equity from one property to fund the next purchase. The challenge is working out which properties to refinance, which lender will take on the full portfolio, and how to time the application so you don't end up paying break costs or losing offset balances.

This article walks through the refinancing process for multiple properties, the scenarios where it makes sense, and the practical steps involved for investors in Riverside and surrounding areas.

Why Refinance More Than One Property at Once

Refinancing multiple properties together allows you to negotiate a single rate across your portfolio, consolidate your repayments, and reduce the administrative load of managing several separate loans.

When you refinance all your properties with one lender, you can often access portfolio pricing, which is a discounted rate offered to borrowers with larger loan amounts. Instead of managing three or four separate loans with different due dates, offset accounts, and online platforms, you can consolidate everything under one facility. This also makes it easier to access equity across your portfolio without needing to apply separately for each property.

In our experience, investors who refinance their full portfolio also find it easier to plan future purchases, since they have a clear view of their total debt, total equity, and total serviceability in one place. If you're considering refinancing for the first time or reviewing your current structure, a loan health check can help identify which properties are on outdated rates or terms.

When Does It Make Sense to Refinance Your Portfolio

You should consider refinancing multiple properties when at least one of your loans is on a high rate, your fixed rate period is ending, or you need to access equity for your next investment.

Consider an investor in Riverside who owns three properties: their owner-occupied home on West Tamar Highway, a rental unit near the Riverside Shopping Centre, and an investment property in Legana. The owner-occupied loan is on a variable rate, the Riverside unit is coming off a fixed rate, and the Legana property is on a higher rate with a different lender. Rather than refinancing each loan separately, they can consolidate all three with a single lender, move to a lower variable rate, and set up offset accounts linked to each property. This reduces their overall interest cost and gives them a single point of contact for future changes.

If your fixed rate period is ending on one or more properties, that's often the right time to review your entire portfolio rather than just rolling onto a higher variable rate with your existing lender.

How Lenders Assess Multiple Property Refinance Applications

Lenders assess your application based on your total income, total debt, and the combined loan-to-value ratio across all properties you want to refinance.

Serviceability is the main hurdle when refinancing multiple properties. The lender will add up all your rental income, subtract holding costs like strata fees and council rates, and then assess whether your total income can service all your loans. They'll also look at the combined equity across your portfolio to determine the overall loan-to-value ratio. If you have strong equity in one property, that can offset a higher LVR on another.

Some lenders have a cap on the number of properties they'll finance for a single borrower. Others may require you to cross-collateralise your properties, which means using one property as security for another. This can make it harder to sell or refinance a single property later without the lender's approval. If you're refinancing to access equity for another purchase, it's worth discussing whether cross-collateralisation is required or whether you can keep each property on a separate security.

The Difference Between Consolidating and Keeping Loans Separate

Consolidating your loans means combining them into a single facility with one lender, while keeping them separate means refinancing each property as a standalone loan, even if they're all with the same lender.

Consolidation works well if you want to simplify your repayments and reduce the number of accounts you manage. Keeping loans separate makes sense if you want to maintain flexibility to sell or refinance individual properties without affecting the rest of your portfolio. Some investors prefer to keep their owner-occupied loan separate from their investment loans to protect their home if serviceability becomes an issue on the investment side.

As an example, an investor refinancing a Riverside home and two investment properties might choose to consolidate the two investments into one loan with a single offset account, while keeping the owner-occupied home as a separate facility. This gives them the administrative benefit of consolidation on the investment side, while maintaining flexibility on their home loan.

What Happens to Offset Accounts and Redraw When You Refinance

Your existing offset balances and redraw funds can be transferred or withdrawn when you refinance, but you'll need to plan how to handle them before settlement to avoid losing interest savings.

If you have offset accounts linked to your current loans, those balances will need to be moved to the new lender's offset accounts at settlement. Some brokers recommend setting up the new offset accounts in advance and transferring the funds on the same day to minimise the gap where your money isn't offsetting interest. Redraw balances are different: they're held within the loan itself, so you'll need to withdraw those funds before settlement and decide whether to reduce the new loan amount or place them into an offset account.

If you're refinancing multiple properties and each one has its own offset account, you'll need to decide whether to consolidate those balances into a single offset or keep them separate. Consolidating can improve your cashflow by offsetting a larger loan amount, but keeping them separate gives you more control over which property benefits from the offset.

How to Handle Fixed Rate Break Costs Across Multiple Loans

If one or more of your properties are still within a fixed rate period, you'll need to calculate the break costs for each loan and decide whether the interest savings from refinancing outweigh the exit fees.

Break costs are charged when you exit a fixed rate loan before the end of the term. The amount depends on the difference between your fixed rate and the lender's current wholesale rate, multiplied by the remaining term and your loan balance. If rates have risen since you fixed, the break cost is usually low or zero. If rates have fallen, the break cost can be substantial.

An investor refinancing three properties might find that two are on variable rates and one is fixed. If the fixed loan has only six months remaining and the break cost is low, it might make sense to refinance all three together. If the break cost is high and the fixed loan has two years remaining, it might be worth refinancing the two variable loans now and waiting to add the fixed loan later. Your broker can request a break cost estimate from each lender before you commit to the application.

Timing Your Refinance Application to Avoid Gaps in Cover

You should aim to settle all your refinanced loans on the same day to avoid holding costs on two sets of loans at once.

When you refinance multiple properties, the new lender will usually settle all the loans together. This means your existing loans are discharged on the same day the new loans are drawn down. If you try to refinance properties separately, you risk a gap where you're paying interest on both the old and new loans, or where one property settles early and you lose access to offset funds.

Most lenders take four to six weeks to process a multi-property refinance application, including property valuations and final credit approval. If one of your properties is located in a regional area like Riverside or Legana, the valuation process can take longer due to fewer comparable sales. Planning the application timeline in advance helps you avoid settlement delays or overlapping costs.

Using Equity from One Property to Fund the Next Purchase

You can refinance one or more properties to release equity and use that as a deposit for your next investment, without needing to sell an existing asset.

This is a common strategy for investors looking to grow their portfolio. If you have built up equity in your Riverside home or an existing investment property, refinancing allows you to access that equity and use it as a deposit for another purchase. The lender will assess your serviceability based on the new total debt, including the additional loan for the new property.

In a scenario like this, an investor might refinance their owner-occupied home to release equity, then use that equity as a deposit for an investment property in nearby Launceston. The refinance and the new purchase can be structured together, so the equity is released at the same time the new property settles. This approach keeps your existing properties in place while expanding your portfolio.

Call one of our team or book an appointment at a time that works for you to discuss your refinancing options and get a clear view of how much equity you can access across your portfolio.

Frequently Asked Questions