If you own more than one property, refinance them as a group rather than one loan at a time. Each loan affects your borrowing power, your costs and, for investors, your tax position.
That is the main idea for Brighton homeowners and investors with a couple of loans on the go. The rest of this article covers how lenders look at a multi-property refinance, what it costs, and how to keep your structure tidy.
Why Refinance Multiple Properties Together?
Refinancing several properties together lets you see your total debt, total repayments and total costs in one view. A rate cut on one loan means little if another loan is quietly costing you more.
A loan health check is a good first step. It lays your loans side by side, covering the rate, features, loan amount and any fixed rate period. From there you can decide whether to refinance one loan, all of them, or none. Sometimes staying put is the right answer, and a good broker will tell you that. Our refinancing page explains the general process.
How Do Lenders Assess a Refinance With Several Loans?
A lender checks that you can afford the new loan, not just the old one. APRA requires banks to test new borrowers' repayments at a rate at least 3 percentage points above the loan's rate, and it confirmed in May 2026 that this buffer stays.
The more loans you hold, the more this matters. A borrower who could comfortably service one loan may find the test tighter across three. APRA has also said that borrowers refinancing with another lender may be assessed case by case. Lenders can take into account things like a solid repayment history, though it is not a promise of approval.
If you are only moving to a lower rate without borrowing more, ASIC guidance says a lender can focus mainly on how you have paid the existing loan. Borrowing extra to release equity is assessed more closely. Our borrowing capacity page is a handy place to start.
What Does Refinancing Multiple Loans Cost?
The main costs are a break fee on any fixed loan you leave early, a discharge fee, and application fees on the new loan. The savings need to outweigh these, including any broker fee, for the move to make sense.
Since 1 July 2011, lenders generally cannot charge an exit fee on a home loan secured by residential property. Break fees and discharge fees are different and can still apply. A break fee only applies to fixed loans, so if one of your loans is nearing the end of its fixed term, it may be worth waiting. Our fixed rate expiry page covers your options when that date arrives.
Mortgage duty has been abolished in Victoria, so you should not face duty on the new mortgage here. Check the full fee list with your lender, as fees differ between them.
One more trade-off: if you stretch the loan term to lower your repayments, you will usually pay more interest over time. ASIC expects lenders to tell you this. You can test different terms with our mortgage repayment calculator.
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Book a chat with a Finance & Mortgage Broker at Blank Financial today.
Releasing Equity Without Muddying Your Tax: An Example
The safest way to release equity is to borrow it as a separate loan split matched to its purpose. The ATO looks at what the borrowed money is used for, not which property secures the loan.
Consider a Brighton owner with a $600,000 home loan and a $400,000 interest-only investment loan. They want $100,000 for a renovation to their own home. The illustrative rate in this example is 6.75% p.a.
If the lender adds the $100,000 to the investment loan, the total becomes $500,000. Interest at 6.75% is $33,750 a year. Under the ATO's apportionment approach, only the investment share (400/500, or 80%) is deductible, which is $27,000. The other $6,750 relates to private use. That ratio applies for the life of the loan, and repayments are applied in the same ratio, so the owner cannot repay only the private part.
Instead, the broker structures the $100,000 as a new split on the home loan. The investment loan stays at $400,000, costing $27,000 a year in interest at the same illustrative rate. The renovation split costs $6,750 a year in interest, and the records stay clean. The trade-off is that the new split adds to the owner's total debt and repayments, which the lender must assess against its serviceability test. The owner should also confirm the tax treatment with their accountant, as outcomes depend on individual circumstances.
Does Refinancing Affect Negative Gearing?
The negative gearing rules turn on when the property was acquired and whether it is a new build, not on when the loan was taken out. Guidance on how a refinance or loan increase interacts with the rules has not been confirmed. Rules changed under legislation that received Royal Assent on 26 June 2026.
Properties held at 7:30pm AEST on 12 May 2026 keep the earlier treatment of rental losses until sold. For established properties acquired after that time, losses can only be offset against residential property income from the 2027-28 income year. Before you change the loans on any investment property, check with your accountant about your own position. Our investment loans page outlines how we approach this type of lending.
What If You Only Have One Loan That Looks Expensive?
One expensive loan is still worth a closer look, but a multi-property review can show whether it is the real problem. Sometimes a high rate on one loan sits alongside a loan with features you are not using, such as an unused offset or redraw.
It is worth asking whether each loan has the features it should for its job. An investment loan with an offset account might make sense in some situations, while a home loan with redraw might suit others. Every feature has a cost, often a slightly higher rate or an annual fee, so match features to how you will really use them.
Want a second pair of eyes on your loans? Call one of our team or book an appointment at a time that works for you. Our Brighton mortgage brokers can compare your loans side by side and tell you whether refinancing is worth it.
Frequently Asked Questions
Can I refinance two properties with different lenders?
Yes, you can refinance each loan separately or move them all to one lender. The right choice depends on costs, your borrowing capacity and how the loans are structured. A health check of each loan helps you decide.
Will I pay an exit fee when I refinance?
Exit fees are generally prohibited on home loans secured by residential property taken out since 1 July 2011. Break fees on fixed loans and discharge fees can still apply, so check each loan before you move.
Is interest deductible if I release equity from an investment property?
Only if the borrowed money is used to produce income. Money used for private purposes is not deductible, even if the investment property is the security. Speak with your accountant about your situation.
Does refinancing change how negative gearing applies to my property?
The negative gearing rules turn on when you acquired the property and whether it is a new build, not on when the loan was taken out. Guidance on how a refinance or loan increase interacts with the rules has not been confirmed, so check with your accountant before changing loans.
