Refinance Your Investment Loan

Revamp Your Investment Loan and Reap Tax Rewards!

Don’t let valuable tax perks slip through your fingers!

Am I Qualified to Refresh My Investment Loan with OzBroker?

To be eligible for loan refinancing, ensure your debt is under 80% of your property’s value. At OzBroker, we welcome refinancing for variable interest rates anytime (if under the 80% threshold). For fixed rates, refinancing is optimal if early exit fee costs can be recovered within two years, especially if it’s to unlock equity for another property investment. To discover more, ring us at 0426667696 or fill out our swift online enquiry form now.

Can I Use Equity to Invest in Another Property?

Absolutely! When you refinance with OzBroker, you can seek a loan increment or cash out to utilize as a deposit for an additional investment property. Borrow up to 80% of your existing property’s value, providing a letter from your conveyancer or the Contract of Sale as confirmation.

Should I Unlock Maximum Equity?

Seasoned property investors often unleash as much equity as possible during low-interest phases, placing funds in an offset account. This tactic is common during lending periods where banks tighten equity release policies in anticipation of a real estate market dip.

Utilize Your Offset Account Efficiently

Allocating equity into an offset account ensures easy fund accessibility without negotiating exceptions with your bank. Use it to amplify your capital position through extra mortgage repayments or seize other investment opportunities. Note that for tax purposes, maintaining most of the refinancing unused funds in the deposit account is typically advantageous due to the non-deductibility of investment loan principal payments.

Choosing Between a Fixed or Variable Rate?

Considering fixing your rate? Think twice if you aspire to maximize your capital position through additional investment loan repayments or if a property sale is imminent. For an in-depth look, check our comprehensive guide on fixed versus variable rates.

Should I Opt for Only Interest Payments When I Refinance?

Whether refinancing to interest-only (IO) payments fits your strategy depends on your investment approach and market conditions. In scenarios where variable rates are lower than fixed rates, selecting an interest-only term and boosting your offset account balance might safeguard a steady cash flow.

Costs Associated with Investment Loan Refinancing

Be mindful of potential costs like home loan setup, loan application fees, exit fees, settlement and discharge fees, and possibly Lenders Mortgage Insurance (LMI) if refinancing surpasses 80% of the property value. Our team can guide you through the varied costs of refinancing, whether it’s merely a rate switch or transitioning to a new lender.

Should I Keep My Properties Tied or Free Up Equity?

Refinancing multiple properties? Contemplate segregating properties into individual loan facilities instead of continuing cross-collateralization, offering benefits like mitigation of concentration risk and easier future refinancing.

Reinvesting or Using Equity for a First Home Purchase?

Whether to continue rentvesting or leverage equity for your first home purchase rests on what takes precedence: financial objectives or lifestyle aspirations. Both paths offer their own merits, from negative gearing benefits to stability and future planning.

Tax Deductibility When Refinancing an Investment Loan

Did you know? Costs incurred while transitioning between lenders or home loan products are tax-deductible! This includes upfront application costs, ongoing loan fees, and any exit or discharge fees. Particularly for self-employed borrowers utilizing a low doc loan, these potentially higher fees can be a negative gearing boon.

Transform Your Home into an Investment Property through Refinancing

Although interest payments on an equity loan (used for a non-income producing asset) aren’t claimable, utilizing an offset account on your primary residence mortgage offers a work-around. Accessing home equity reduces the offset account balance, making the interest on the new loan amount tax-deductible.

Important: The above serves as generalized information and should not replace professional tax advice. Consult an accountant or a property tax specialist for precise guidance.

Refinance Your Investment Loan with OzBroker Today

Chances are, you’re overpaying interest on your investment home loan. At OzBroker, we’re poised to help you commence saving thousands annually by refinancing! Supported by industry specialists, our uncomplicated procedure facilitates an effortless transition from your current lender, with us handling the nitty-gritty. Intrigued?

Dial 0426667696 or complete our obligation-free assessment form to explore how OzBroker can help you save through your investment home loan refinancing journey.

FAQs

1. How does equity refinancing work?
   – Refinancing involves altering your mortgage, potentially unlocking equity – the difference between your property’s value and the amount you owe on it.
2. What does it mean to have equity below 80%?
   Having equity below 80% implies that the remaining balance of your loan is less than 80% of the property’s current market value.
3. Why use an offset account in refinancing?
   An offset account can offer flexibility, allowing easy access to extra funds and potential tax benefits.
4. What are the risks of refinancing?
   Risks can include costs (like application or exit fees), longer loan durations, and variable rate changes.
5. Is it better to have a fixed or variable rate when refinancing?
   The better option hinges on your financial situation, investment strategy, and market conditions, among other factors.
6. Why should I refinance my investment loan with OzBroker?
   OzBroker prides itself on a streamlined, customer-centric approach, aiming to save you money and simplify your refinancing process.
7. Are there any additional costs when switching lenders?
   Yes, potential costs when switching include exit fees, application fees, and possibly LMI if borrowing above 80% of your property’s value.
8. How can OzBroker aid my refinancing process?
   OzBroker can assist in navigating through refinancing options, managing paperwork, and facilitating a smooth transition between lenders, among other tailored services.

Remember, while exploring refinancing options can be done independently, having a seasoned team like OzBroker on your side can illuminate potential avenues and pitfalls, guiding you towards strategic, financially sound decisions. For a no-fuss, comprehensive approach to investment loan refinancing, OzBroker is here to assist every step of the way.