If you have a loan for your investment property, you should be currently expecting a variable interest rate of about 6 – 6.1%pa.
If you would like to refinance your investment property loan, it is good to know that associated costs are tax-deductible, for example:
- the costs for breaking your existing loan early (e.g., fixed rate break fees).
- the costs associated with your new (i.e. refinanced) loan, such as application or establishment fees, lender valuation and/or title search fees for your property, and lenders’ mortgage insurance (if applicable).
Other potential benefits of refinancing your investment property loan could be:
- access to equity if you would like to purchase additional investment properties
- flexible loan features that may better suit your investment strategy, including interest only loans, fixed rate loans or variable rate loans.
- opportunity to renegotiate your loan terms, such as a shorter term for faster debt reduction or a longer term for lower monthly payments.
- enhance the property value by using the funds from a cash-out refinance to renovate or improve your investment property, this could help increase its market value and rental income potential, ultimately improving your return on investment.
Refinancing Your Investment Property
It is important to note that refinancing also comes with costs, such as loan application fees, valuation fees, and legal fees. Therefore, it is essential to carefully evaluate the costs and benefits of refinancing and to consult with a mortgage broker to determine whether it is a suitable strategy for your investment property. Speak to our mortgage broker, Brett Elliot for more information.
T: +61 3 8419 9800 | M: 0409 402 086 | E: lending@wilsonpateras.com.au | Book a meeting
Wilson Pateras Accounting Pty Ltd is a related entity of Wilson Pateras Lending and Finance (VIC) Pty Ltd and Wilson Pateras Financial Planning Pty Ltd (Wilson Pateras Group). Where you are referred to a related entity by your adviser and take up lending or financial services, your adviser and the directors and shareholders of the Wilson Pateras Group do not receive any direct remuneration or benefit as a result of these referrals but may be entitled to profits as part of their ownership in each entity. You are free to engage your own preferred professional service providers should you prefer. This content has been prepared by Wilson Pateras to further our commitment to proactive services and advice for our clients, by providing current information and events. Any advice is of a general nature only and does not take into account your personal objectives or financial situation. Before making any decision, you should consider your particular circumstances and whether the information is suitable to your needs including by seeking professional advice. You should also read any relevant disclosure documents. Whilst every effort has been made to verify the accuracy of this information, Wilson Pateras, its officers, employees and agents disclaim all liability, to the extent permissible by law, for any error, inaccuracy in, or omission from, the information contained above including any loss or damage suffered by any person directly or indirectly through relying on this information.
