How Soon Can You Refinance Your Investment Property?

Dilleen Property Group 2022

How soon after purchasing an investment property can you go back to the bank or your broker and refinance it?

Maybe you want to pull some equity out to use for your next property purchase but it’s only been a couple of months, is this possible?

In this blog post I’m going to answer the question on how soon you can refinance your investment property.

The other day someone came to me and said they had bought a property back in December for around 450k in Brisbane Queensland. They said some comparable properties in the same area are now selling for around 550k - 600k.

They wanted to know how soon they refinance and use the equity to buy their next property/ies

My answer to this is that you can do it whenever you want.

You could even do it right away.

I personally got equity out and refinanced one of my properties just 2 months after purchasing it. This is the quickest I’ve done it, however I’ve seen people refinance after 1 month or even as soon as 3 weeks after purchasing.

However, I have seen people have to wait 6 months or 12 months.

It ultimately depends on a few different factors, but the main thing it depends on is the valuation - the new valuation that you get on the property.

So in this circumstance - the person bought a property for 450k and now says that others are selling for around 550k - 600.

He would now have to order a valuation - whether it’s a desktop valuation or a physical valuation.

If he can get a valuation for 550k, then he essentially has an additional 100k and then go to refinance the property and take that equity out.

Now, he won’t be able to take out the full 100k of equity, most of the time you can take out 80% of it.

Once he goes to a bank or broker and takes out that available equity he ca then go an use that for another 1 or 2 property deposits.

To sum up - you can refinance your property as early as you want, but it will depend on your valuation.

If you need a referral for an experienced mortgage broker to handle your finance, we recommend using Justin Picker from Picker Financial Solutions

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.