As a FIFO worker in South Australia, you've likely built up equity in your investment properties over the years. But are you making the most of these assets? Refinancing your investment property could open doors to opportunities you hadn't considered.
Understanding investment property refinancing
Refinancing involves replacing your current home loan with a new one, often with different terms or a different lender. For investment properties, this process can serve several purposes beyond just accessing a lower interest rate.
Many FIFO workers find themselves in unique financial situations. Your irregular income patterns and substantial earning periods can actually work in your favour when it comes to loan applications, provided you work with someone who understands the FIFO lifestyle.
Why consider refinancing your investment property?
There are several compelling reasons to explore refinancing:
• Releasing equity in your property - Property values may have increased since your original purchase
• Consolidate debts - Combine multiple debts into one manageable payment
• Change your loan term - Adjust repayment periods to suit your current financial situation
• Reduce loan repayments - Lower monthly costs can improve cash flow
• Release equity to buy the next property - Use existing equity as a deposit for additional investments
For FIFO workers, these benefits can be particularly valuable given the cyclical nature of your income and the potential for extended periods between contracts.
When refinancing makes sense
Several scenarios might trigger your decision to refinance:
- Fixed rate period ending - If you're moving from a fixed to variable interest rate
- Interest rate changes - When refinance interest rates become more favourable
- Changed financial circumstances - Your loan amount needs may have evolved
- Portfolio expansion - You're ready to grow your investment portfolio
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
The refinancing application process
The application process for investment property refinancing involves several key steps:
Documentation preparation
You'll need to gather banks statements, income records, and property valuations. For FIFO workers, this includes demonstrating your employment stability and income consistency across fly-in, fly-out cycles.
Property assessment
Lenders will evaluate your current property value to determine available equity and loan-to-value ratios.
Financial situation review
Your broker will assess your overall financial position, including existing debts, income streams, and investment goals.
Accessing loan options across Australia
One significant advantage of working with experienced brokers is the ability to access loan options from banks and lenders across Australia. This broader reach means you're not limited to your local branch or a single institution's products.
Different lenders offer varying:
• Variable interest rate options
• Fixed interest rate periods
• Loan features and flexibility
• Approval criteria for FIFO workers
This diversity allows you to find loan products that align with your specific circumstances and goals.
Special considerations for FIFO workers
Your FIFO status can actually be advantageous when refinancing. Many lenders now recognise the stability and higher earning potential of FIFO arrangements. However, you'll want to check eligibility for special lender policies that cater specifically to your employment type.
A streamlined application process designed for FIFO workers takes into account:
• Seasonal income variations
• Employment contract structures
• Geographic work locations
• Future earning potential
Conducting a home loan health check
Regular reviews of your investment property loans can reveal opportunities for improvement. A comprehensive home loan health check examines:
• Current interest rates versus market offerings
• Loan features you're not utilising
• Potential equity growth
• Changes in your financial goals
• Opportunities to potentially access a lower interest rate
For FIFO workers, these reviews are particularly valuable given how quickly your financial situation can evolve between contracts and career phases.
Making your decision
Refinancing isn't always the right choice for everyone. Consider factors like:
• Exit fees from your current loan
• Application costs for new loans
• The time remaining on any fixed rate periods
• Your medium-term property and financial goals
Working with a broker who understands both investment property lending and FIFO employment ensures you receive advice tailored to your unique circumstances.
Your investment property portfolio represents significant wealth-building potential. Regular refinancing reviews help ensure you're maximising the value of these assets while maintaining financial flexibility for your FIFO lifestyle.
Ready to explore your refinancing options? Call one of our team or book an appointment at a time that works for you.
