Investment Property Refinance: Before You Sell, Review Your Mortgage Options
With higher interest rates, changing property prices and new negative gearing rules, we are seeing more property investors considering selling.
But if higher repayments or cash flow are driving that decision, it may be worth considering an investment property refinance or mortgage review before you sell.
Existing Investors May Have an Advantage
For new investors purchasing an established property after the cut-off, the tax treatment is changing.
Why does that matter from a lending perspective?
Because some lenders take negative gearing benefits into account when assessing borrowing capacity and loan servicing.
For an existing investor, this can make a significant difference to servicing in some circumstances — and potentially provide more options than you realise.
Existing Investment Properties Are Grandfathered
Negative gearing isn’t just something you discuss with your accountant at tax time.
It can also be relevant to investment loan servicing.
Depending on the lender and your circumstances, some lenders take negative gearing tax benefits into account when assessing borrowing capacity.
That means an existing grandfathered investment property may provide a servicing position that could be quite different from purchasing another established investment property under the new rules.
For some investors, that could potentially create options to:
- refinance an investment loan to a more competitive rate
- extend or review an interest-only period
- access available equity
- restructure existing investment lending
- use equity towards another investment or other eligible purpose.
Every lender assesses investment income, expenses and negative gearing differently, so the outcome will depend on your individual position.
Before You Sell, Look at Your Cash Flow
If rising repayments are making you consider selling your investment property, it may be worth reviewing the loan before making that decision.
Depending on your circumstances, there may be options to:
- restructure or refinance your investment loan
- negotiate a better interest rate
- extend an interest-only period
- access available equity
- review your overall lending to improve monthly cash flow.
Selling may still be the right decision — but once a grandfathered investment property is sold, you may not be able to recreate the same negative gearing position by purchasing another established property later.
Australia’s negative gearing rules have changed before. Restrictions were introduced in 1985 and reversed in 1987.
What happens with policy in the future is impossible to predict. That’s exactly why we wouldn’t suggest making an investment decision based on predictions about what a future government might do.
Don’t Sell Because of the Headlines – Get the Facts
If you’re considering selling, speak with your accountant or tax adviser first to understand exactly what the changes mean for your individual position.
And if cash flow or higher repayments are driving the decision, chat with the WhiteStar Finance team before putting the property on the market.
We can review whether a better rate, loan restructure, extended interest-only term or other lending option could improve your cash-flow position and help you understand what’s possible before you make such a significant decision.
Our job is to show you what’s possible. Your job is to decide what’s right for you.
Talk to WhiteStar Finance & Conveyancing to understand your options, improve your finances, and plan your next steps with confidence.
General information only and not tax, financial or investment advice. Speak with your accountant or tax
adviser regarding your individual circumstances. Lending criteria and eligibility requirements apply.
Frequently Asked Questions
Unlike going directly to a bank, we compare multiple lenders and tailor a solution to suit you.
With over 30 years’ experience, we specialise in both straightforward and more complex scenarios — often finding solutions where others can’t.
As mortgage brokers, we’re also bound by Best Interests Duty, meaning we’re legally required to act in your best interests — not the lender’s.
We can review your options (including your credit file) without leaving multiple enquiry marks that may impact your score, so you can explore what’s possible with confidence.
With strong reviews, real client results, and conveyancing support in Victoria, we’re here to guide you from start to finish.
Read our Reviews and Case Studies to know more
Poor credit generally refers to your overall credit history, including missed repayments, defaults or high levels of debt.
Your credit score is a number that reflects this history at a point in time. While your credit score is important, lenders also look at the bigger picture — including your income, expenses and ability to repay.
This means some borrowers may still be eligible for home loan if their credit score is lower. Lenders have different criteria, it about knowing who will help with a bad credit score and also who will help with bad credit like defaults and arrears.
Yes, a home loan is often still possible after missed repayments. Some lenders offering bad credit home loan solutions or poor credit options will look at your current position and ability to meet repayments moving forward. Also the story and events behind these arrears are also important for finding what options are available. Our Home Loan Brokers often look deeper and try to get an everyday home loan solution if we can. Its important to understand your options before the arrears grow. We always recommend in times of financial pressure to pay the mortgage first. Ideally come to an experienced broker to not end up Trapped with finances you cannot manage as soon as possible.
Great Case Study
Yes — using equity to pay off debts is one of the most common reasons people refinance.
By rolling personal loans, credit cards, and other debts into your home loan, you can often simplify multiple repayments into one and improve your overall cashflow.
In many cases, we’ve helped clients significantly reduce their monthly commitments — giving them some much-needed breathing room.
Using this approach to manage cost of living and lifestyle pressures can be helpful, especially as a reset.
However, it’s important to be mindful of relying on this too often, as it can increase interest over time by spreading short-term debts over a longer loan term.
Yes — refinancing can reduce repayments by securing a lower rate, restructuring your loan, or consolidating debts.
We help clients with this every day and have many case studies where repayments have reduced significantly.
Where possible, we aim to maintain your loan term, but sometimes extending it forms part of the solution. The key is ensuring the refinance genuinely improves your position.
Read a Case Study Here
Yes in many cases you can get a home loan with Bad Credit. Options are very much dependent on the situation and financials.
You Might Have More Options Than You Think
Many people come to WhiteStar thinking they need a bad credit home loan and that their options are limited.
In many cases, once we understand the full background, we’re able to help secure a standard home loan — simply by matching the right lender and approach to the situation.
Just because your credit score is low doesn’t always mean you’re out of options.
See some of Our Case Studies
This could be for one or more reasons. It could be income and servicing criteria not being met, credit conduct or credit score, lending policy or even security criteria not being met. Using a broker is a great way to avoid another decline or to learn more about why.
There isn’t always a perfect time to refinance — but it’s smart to keep an eye on your options.
What you see in the media or online doesn’t always reflect what’s actually possible for your situation.
In most cases, it’s better to review your options before financial pressure builds. Acting early can give you more flexibility, improve your chances of approval, and reduce stress if things become tighter down the track.
