As a current or former Australian Defence Force member, you've likely worked hard to build your investment property portfolio. Whether you purchased your investment property years ago or more recently, there comes a time when refinancing becomes a smart financial move.
Why Consider Refinancing Your Investment Property?
Refinancing your investment property isn't just about accessing a lower interest rate, though that's certainly one of the key benefits. There are several compelling reasons why Defence members should consider this option:
• Release equity to buy the next property - Your investment property may have increased in value since purchase, creating equity you can access
• Reduce loan repayments through more favourable terms or lower rates
• Consolidate debts by combining multiple loans into one manageable payment
• Change your loan term to match your current financial goals
• Take advantage of your fixed rate period ending to secure new competitive rates
Understanding Your Rate Options
When refinancing, you'll need to choose between different interest rate structures. A variable interest rate fluctuates with market conditions, while a fixed interest rate remains constant for an agreed period. Many Defence members prefer the predictability of fixed rates, especially when planning around deployment schedules or career transitions.
Refinance interest rates can vary significantly between lenders, which is why working with finance & mortgage brokers becomes valuable. We can access loan options from banks and lenders across Australia, giving you a comprehensive view of what's available for your specific financial situation.
The Application Process for Defence Members
The refinancing application process for investment properties involves several key steps:
- Assessment of your current loan amount and terms
- Review of your financial situation including income, expenses, and other commitments
- Property valuation to determine current market value
- Preparation of required documentation such as bank statements and income verification
- Submission and processing through your chosen lender
As Defence members, you often have unique circumstances that civilian brokers might not fully understand. Your income structure, allowances, and career progression can all impact your refinancing options.
Special Considerations for ADF Members
Defence personnel have access to certain advantages that shouldn't be overlooked during refinancing:
• Check eligibility for special lender policies designed specifically for ADF members
• Streamlined application process with lenders familiar with Defence pay structures
• Recognition of military allowances as legitimate income sources
• Consideration of career stability that comes with Defence service
Releasing Equity in Your Property
One of the most powerful aspects of refinancing is releasing equity in your property. If your investment property has appreciated in value, this equity can be accessed through refinancing and used for:
• Purchasing additional investment properties
• Funding home improvements or renovations
• Investing in other assets or opportunities
• Creating a financial buffer for unexpected expenses
The amount of equity you can access will depend on your property's current value, your remaining loan balance, and the lender's loan-to-value ratio requirements.
Better Loan Options Through Professional Guidance
Working with specialist finance & mortgage brokers who understand the Defence community means accessing better loan options tailored to your unique situation. We understand the challenges of military life, from deployments to postings, and how these can impact your financial planning.
Our role involves:
• Comparing products from multiple lenders
• Identifying loans that suit your specific circumstances
• Managing the application process while you focus on your service commitments
• Providing ongoing support throughout the refinancing journey
When Should You Consider Refinancing?
Timing your refinance can make a significant difference to the benefits you receive. Consider refinancing when:
• Your current interest rate is higher than what's currently available
• You need to access equity for another investment or major purchase
• Your financial situation has improved since your original loan
• You want to switch from variable to fixed rates, or vice versa
• Your current lender's service no longer meets your needs
Making the Right Decision
Refinancing your investment property is a significant financial decision that requires careful consideration of your current circumstances and future goals. As a Defence member, you have unique opportunities and challenges that require specialist knowledge and understanding.
The key is ensuring that any new loan structure aligns with your investment strategy and personal financial objectives. Consider factors such as the total cost over the life of the loan, not just the interest rate, and how the new terms will work with your military career plans.
Call one of our team or book an appointment at a time that works for you to discuss how refinancing your investment property could benefit your financial position.
