Everything You Need to Know About Refinancing Multiple Properties

Refinancing one property involves paperwork and waiting. Refinancing three or four at once multiplies both, but it also creates opportunities that single-property owners never access.

If you own multiple properties in or around Bentleigh, the decision to refinance your portfolio usually comes down to one of three triggers: your fixed rates are expiring across several loans, you want to access equity from one property to fund the next, or you've realised your current lender is charging different rates across your portfolio and you're paying more than you should.

Why Refinancing Multiple Properties Is Different

When you refinance a portfolio, lenders assess your entire debt position at once. This means your borrowing capacity, serviceability, and risk profile are evaluated across all properties, not individually. Some lenders will offer portfolio discounts or waive fees when you consolidate multiple loans under one application. Others will treat each property as a separate loan and charge accordingly.

The sequencing of your applications matters. If you apply to refinance all your loans simultaneously with different lenders, each credit enquiry appears on your file before any new loan settles. This can raise concerns with lenders who see multiple live applications and question whether you've overextended. Coordinating the timing of your applications and settlements avoids this.

How Equity Access Works Across Multiple Properties

Most property investors refinance to access equity from one property to fund the deposit on the next. When you own multiple properties, you can choose which property to draw equity from based on where the valuation has moved most favourably or where your current loan-to-value ratio gives you the cleanest access.

Consider an investor who owns a property in Bentleigh and another in Ormond. The Bentleigh property has increased in value and sits at 65% loan-to-value ratio, while the Ormond property is at 78%. Accessing equity from the Bentleigh property allows the investor to stay well within serviceability limits and avoid lenders mortgage insurance on the new lending. Structuring this as a refinance rather than a top-up can also provide access to lower rates if the current lender isn't offering competitive pricing.

When you access equity, the funds are typically released at settlement into your nominated account. You'll need to demonstrate to the lender how those funds will be used, particularly if they're going toward another property purchase. Most lenders want to see a contract of sale or a clear investment strategy before approving the equity release.

Fixed Rate Expiry Across a Portfolio

If you fixed multiple investment loans during the low-rate period and those fixed terms are ending around the same time, refinancing the entire portfolio at once can provide leverage when negotiating with lenders. A $2 million portfolio refinancing is more attractive to a lender than four separate $500,000 loans, and that often translates into lower rates or waived application fees.

The alternative is letting each loan roll to the lender's standard variable rate and refinancing individually over time. This approach avoids the coordination effort but usually costs more in interest over the following 12 months.

Lenders treat portfolio refinances differently depending on whether the loans are for owner-occupied or investment purposes. If all your properties are investments, the interest is typically deductible, and lenders assess serviceability using rental income. If one property is your home and the others are investments, the lender will separate the assessments and apply different serviceability tests to each loan type.

Valuation Risk When Refinancing Multiple Properties

Every refinance depends on the lender's valuation. When you're refinancing multiple properties, you're exposed to valuation risk on each one. If one property comes in lower than expected, it can affect your loan-to-value ratio and reduce the amount you can borrow or access in equity.

In Bentleigh, where the median has moved over the past few years, some properties have seen stronger growth depending on proximity to the train station or the size of the land. A valuation that comes in below your expectation can delay settlement or require you to contribute additional funds to meet the lender's loan-to-value ratio requirements.

One way to manage this is to request desktop valuations where possible for properties that have been recently purchased or where you're confident the value is well above the loan amount. Full valuations cost between $200 and $600 per property, so across a portfolio of four properties, you're looking at up to $2,400 in valuation fees alone. Some lenders will waive one or more valuations if the loan-to-value ratio is conservative.

Structuring Loans Across Multiple Properties

When refinancing a portfolio, you can choose to split your loans across different lenders or consolidate them with one. Splitting across lenders can provide access to different features or rates, but it increases the administrative load and makes it harder to negotiate portfolio pricing. Consolidating with one lender reduces complexity and often unlocks lower rates, but it also means you're reliant on that lender's serviceability policy and appetite for investment lending.

Some investors use a combination: they keep their owner-occupied home loan with one lender and place all investment properties with another. This separation can protect the family home if there's ever a need to sell an investment property or renegotiate terms.

Loan structuring also involves deciding whether to use offset accounts or redraw facilities across your portfolio. Offset accounts are generally preferable for investment loans because they keep the interest deductible while giving you access to cash. Redraw facilities can complicate your tax position if you're mixing personal and investment funds in the same loan.

Serviceability and Income Documentation

Lenders calculate serviceability differently when you're refinancing multiple investment properties. Rental income is included in your serviceability assessment, but most lenders will only recognise 80% of the rent to account for vacancy periods and maintenance costs. If your portfolio generates $8,000 per month in rent, the lender will assess it as $6,400 in income.

If you're self-employed or your income has changed since you first took out the loans, you'll need to provide updated tax returns and financials. Lenders want to see that your income can service the total debt across all properties, including your owner-occupied home if you have one. A loan health check before you apply can identify any serviceability gaps early and give you time to adjust your structure or increase your income documentation.

Application Timing and Settlement Coordination

When refinancing multiple properties, the timing of each application and settlement needs to be coordinated. If you're moving all loans to one lender, they'll usually process the applications together and aim for a single settlement date. If you're splitting across lenders, you'll need to manage multiple timelines and ensure that any equity release or loan discharge happens in the right sequence.

Settlement periods typically range from four to eight weeks depending on the lender and the complexity of the application. If one property is delayed due to a valuation issue or missing documentation, it can push back the entire refinance. Building buffer time into your timeline avoids last-minute stress and gives you room to address any issues that come up during the process.

Costs and Fees Across a Portfolio Refinance

Refinancing multiple properties involves discharge fees from your current lender, application fees with the new lender, valuation fees, and legal costs for each property. Discharge fees are usually between $150 and $400 per loan. Application fees vary by lender, with some charging up to $600 per application and others waiving fees entirely for portfolio refinances.

Legal costs depend on whether you're dealing with multiple lenders or consolidating with one. Expect to pay between $800 and $1,500 per property for settlement and title transfer costs. Across a portfolio of three or four properties, the total cost of refinancing can range from $5,000 to $10,000. The question is whether the interest savings or equity access justifies that outlay.

Most investors recover these costs within 12 to 18 months if the refinance delivers a meaningful rate reduction or unlocks equity that generates additional income through a new investment.

When Not to Refinance Multiple Properties at Once

Refinancing a portfolio isn't always the right move. If your current loans are within 0.2% of the lowest available rate and you're not accessing equity, the cost and effort of refinancing might outweigh the benefit. Similarly, if one or more properties are likely to be sold within the next 12 months, refinancing those loans now will result in paying upfront costs for a loan you'll discharge shortly after.

Another consideration is your current lender's retention team. If your fixed rates are expiring and you approach your lender before they roll to the standard variable rate, many lenders will offer a discounted rate to keep your business. This can be a faster and lower-cost option than a full refinance, particularly if you're satisfied with the loan features and offset arrangements you already have.

If you're planning to expand your portfolio further within the next six months, it may make sense to delay refinancing until after the next purchase settles. This avoids the situation where you refinance, then immediately need to restructure again to accommodate the new lending.

Refinancing multiple properties requires more coordination than refinancing one, but it also provides opportunities to restructure your debt, improve cashflow, and position your portfolio for the next stage of growth. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions