Why, When and How to Refinance

Refinancing investment property is one of the true ways of building wealth. Typically what happens is that a landlord purchases a property, rents it out to an tenant. The rent ideally, covers the mortgage. Wait 20 years or these days often much sooner for the house price to rise. As equity builds over time the landlord refinances the original mortgage to one that covers both the amount remaining from the original mortgage plus the equity available. Usually it is done so that rental rises still cover the new refinanced mortgage.

Why Refinance?

When one really looks at it there are essentially two things you can do to your investment property. You can either extract the equity out of it or sell it.

When to Refinance?

Anytime really, but in general it is better when interest rates and your personal circumstances to get a good deal are aligned.

How to Refinance?

The most sensible option is to speak to a broker.