A Guide to Refinancing Investment Property Loans at Tax Time

Tax time is a period when many individuals consider refinancing their loans, particularly investment property loans. Refinancing an investment property can offer various benefits, such as obtaining a lower interest rate or consolidating debt. However, it is crucial to understand the costs and considerations involved in the refinancing process. This guide provides an overview of refinancing investment property loans, the tax deductibility of refinancing costs, and other important factors to consider. Whether you are a property investor or a homeowner, understanding the implications of refinancing during tax time can help you make informed financial decisions.

Refinancing an investment property can be a smart financial move, but it’s important to understand the process and consider the costs involved. Here’s a brief overview of what you need to know:

  1. Credit Score Requirements: While there is no magic number that guarantees approval, having a decent credit score can increase your chances of refinancing. Different lenders have different credit criteria, so it’s essential to research and compare options.

  2. Lender Variations: Established lenders typically have stricter credit score requirements, while smaller lenders may be more flexible. Some lenders may even prioritize other aspects of your application over your credit score.

  3. Multiple Applications: Making multiple refinancing applications with different lenders is not recommended. Each application will be reflected on your credit report and can potentially lower your credit score. Frequent applications may also make lenders hesitant to approve future loans.

  4. Consider Your Goals: Before refinancing, consider your goals and individual circumstances. If you want to reduce mortgage repayments, ensure that the numbers make sense by using a loan calculator to compare different loan types and options.

  5. Factors to Consider: Refinancing may not be suitable for everyone. If you have a fixed rate, a high loan-to-value ratio (LVR), or if your property has decreased in value, it’s important to think twice before refinancing. Assess the costs against potential financial benefits.

  6. Seek Professional Advice: Refinancing can be complex, so it’s wise to do thorough research and consider speaking with a mortgage broker or financial advisor. They can provide personalized guidance and help you determine if refinancing is the right option for you.

  7. Stay Informed: Stay up to date with property investment news, tips, and market insights to make informed decisions about refinancing your investment property.


Please note that the information on this page is general information only and should not be taken as constituting professional or financial advice. Reventon Finance and it’s staff are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information on this page relates to your unique circumstances. 

Reventon Finance is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.



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