Eternity Group

Property investors · Refinancing

Refinancing Investment Loans

Refinancing scoped specifically for investment borrowing — rate and structure reviews, interest-only renewals, equity release and loan-purpose discipline — by a Chartered Accountant who is also a Credit Representative, so the tax-deductibility context is kept in view throughout.

Book an Investor Refinance ReviewSee the General Refinance Service

Where information on this page combines tax and lending considerations, tax-related statements are general only and depend on individual circumstances. Eternity Group Accountants is a registered tax agent (TPB 25523469). Mr Rohan Manokaran (Credit Representative 565110) is authorised under Australian Credit Licence 561324. Seek personal tax and credit advice based on your situation.

What this page is for

Refinancing, narrowed to investment loans.

This is the investor-specific refinance page. It assumes the borrowing funds an income-producing property and centres on the decisions that flow from that — not the owner-occupier basics.

Our broader refinancing service covers both owner-occupier and investment lending — rate, term, fixed-versus-variable mix, debt consolidation and the costs of switching. That page is the right starting point if your loan is on your home. This page is for the case where the loan sits behind a rental property, because once the borrowing is income-producing the structure carries tax weight that an owner-occupier refinance simply does not.

On an investment refinance the headline rate is rarely the whole story. Loan purpose drives whether interest is deductible under current law. The interest-only term has an expiry that resets your repayment. Equity released at refinance can fund the next deposit — or quietly contaminate the deductibility of an existing loan if it is drawn for private use. Each of those is an investor decision, and each is scoped here alongside the tax position rather than in isolation. For the general service that also handles home-loan refinances, see refinancing.

This is general information only and does not take into account your objectives, financial situation or needs. Eligibility, lender criteria, fees and charges apply, and outcomes depend on the lender's assessment and your circumstances. Personal tax advice and personal credit advice on any specific refinance are provided through an engagement under the relevant TPB and ACL frameworks.

Reasons to review

When an investment refinance earns its costs.

A refinance has real costs — discharge and registration fees, new-lender application and valuation fees, any fixed-rate break cost. The cases below are when an investor review tends to pay for those costs, modelled in writing first.

Rate review

Reversion vs market · investor pricing

Investor loans are usually priced above owner-occupier loans, and the margin between lenders can be wide. Where your rate has drifted above the market for a comparable investor profile, a rate review against the breakeven cost of switching is worth running — particularly on larger balances where a small margin compounds quickly.

Interest-only expiry

Renewal · extension · revert to P&I

An expiring interest-only term resets your repayment to principal-and-interest unless you renew or extend. Reviewing the options one to three months before expiry lets you compare extending with the current lender, refinancing to a new interest-only term, or accepting the revert — each with a different cash-flow profile.

Structure change

Split · offset · investor positioning

Sometimes the right move is not a new lender but a restructure — splitting fixed and variable, repositioning an offset, or aligning the facility with how the property is actually used. On an investment loan the structure interacts with deductibility, so it is scoped with the tax side in view.

Equity release

Next deposit · purpose discipline

Releasing usable equity at refinance is a common way to fund the deposit and costs on the next property. The discipline that matters is keeping the released funds clearly separated and applied to the investment, so the purpose — and the deductibility that follows it — is documented at drawdown.

Loan-purpose cleanup

Untangling a mixed-purpose loan

Where prior redraws or top-ups have blended investment and private use into one balance, a refinance can be the cleanest moment to split the borrowing into clearly purposed facilities. This is documented alongside the tax side so the apportionment is defensible.

Change of use

Owner-occupier ↔ investment

Where a property changes use — a former home becomes a rental, or a rental returns to owner-occupier — the loan purpose and the lender's pricing change with it. A refinance is often the cleanest way to align the loan with the property's new income-producing status.

The one-roof advantage

Why deductibility belongs in the refinance conversation.

The reason an investor refinance is scoped here, not on the general page, is that several of its decisions land directly on the tax return. Doing them in one conversation with one practitioner removes the gap that usually sits between a broker and an accountant.

Interest deductibility follows the use of the borrowed funds, not the name of the lender. So a refinance that simply moves an income-producing loan from one lender to another generally preserves the deductibility position under current law. The risk is at the edges — when the loan is increased and the extra is used privately, when an equity release is drawn into the same account that already holds investment borrowing, or when redraw is used as a substitute for offset. Each of those can contaminate the loan's purpose history and make the interest harder to apportion later.

Eternity Group runs the accounting and the broking sides of the practice under one Chartered Accountant who is also a Credit Representative. For an investment refinance this means the loan purpose is documented at refinance in a way that supports the tax position, offset and redraw are positioned to preserve the deductibility character of the borrowing, and the year-end rental schedule reconciles to the new facility. The tax side of this work continues through the accountant for property investors, and the loan-purpose and debt-recycling thinking is set out under tax-aware mortgage strategy.

Under current law, the net loss on a negatively geared investment property is generally deductible against other income, and a discount can apply to a capital gain on an asset held for the relevant period. The Government announced changes to the CGT discount and to negative gearing in the 2026–27 Federal Budget; those measures are not yet law and are intended to apply from 1 July 2027 if enacted, so always check the current law for the relevant income year. This is general information only; personal tax advice should be sought.

Scope

What an investor refinance review covers.

Practical, lender-specific work — modelled and documented before any application is submitted.

Rate and breakeven

Comparison of your current investor rate against the market for a comparable profile, set against the full cost of switching — discharge, registration, new-lender fees and any fixed-rate break cost — so the decision turns on net benefit, not the headline number.

Interest-only renewal

Where an interest-only term is expiring, modelling of the three paths — extend with the existing lender, refinance to a fresh interest-only term, or accept the revert to principal-and-interest — including the serviceability each repayment requires.

Equity release for the next deposit

Calculation of usable equity at refinance, the lender policy and LVR thresholds that apply, and the purpose discipline that keeps released funds clearly tied to the investment. The mechanics are set out under tax-aware mortgage strategy.

Loan-purpose and structure

Positioning of splits, offset and redraw so the borrowing's purpose history stays clean, plus untangling of any mixed-purpose balance into clearly purposed facilities — documented alongside the tax side of the practice.

Process

From scoping call to settlement — typically 4–8 weeks.

A document-driven sequence with the tax side and the lending side coordinated by the same practitioner. You see the recommendation in writing — with costs and breakeven — before any formal application.

Scoping call

Why you are reviewing — rate, interest-only expiry, equity release, change of use — plus the current loan, the property's use, and any timing constraints.

Document collection

Existing mortgage statement, payslips or tax returns, rental ledger or appraisal, prior-year rental schedules, and current debt statements. Read-only access where possible.

Position & purpose review

Borrowing capacity, target lender shortlist, structure and loan-purpose recommendation, costs of switching and breakeven — documented in writing with the deductibility context noted.

Lender application

Application submitted to the shortlisted lender, which applies its own credit and policy assessment. Rental income shading and holding costs included. Progress reported at each milestone.

Approval & discharge

Unconditional approval triggers discharge coordination with the existing lender, mortgage documents to the solicitor, and the settlement booking.

Settlement & tax handover

Settlement on the agreed date with funds tracked to support the rental schedule. The tax side of the practice is already aware of the new structure for year-end.

Frequently asked questions

Investment-loan refinancing — common questions.

The mechanics of switching lenders are similar, but the consequences are not. On an investment loan the structure carries tax weight: the loan purpose drives whether interest is deductible under current law, the choice between offset and redraw can affect the deductibility character of the borrowing, and the timing of an equity release or a refinance can intersect with the rental schedule and any CGT event on the underlying property. On an owner-occupier loan none of that applies. Our general refinancing service covers both kinds of borrowing; this page narrows to the investor-specific decisions. See /finance/refinancing for the broader service.

How we are paid

How we are paid: Eternity Mortgage Solutions typically receives commissions from the lender for loans arranged on your behalf. A full explanation of how we are paid, our lender panel and any potential conflicts of interest is provided in our Credit Guide and Credit Proposal Disclosure document, available on request before any loan application is submitted.

Related

Where this fits in the bigger picture

An investment refinance touches the general refinance service, the underlying investor loan product, equity release, the broking service and the tax side. The connected pieces sit across both sides of the practice.