Portfolio Investor


An established investor presented to the team with a Portfolio of 5 investment properties.

He was looking to purchase a sixth property but had an application declined by his current lender, as they deemed, he had insufficient income to afford the debt of a new investment property.

In addition, the client was unsure about the structure of his loans. His relationship with the lender had been such that they had explained relatively little about the process and structure of his portfolio and would simply advance the funds each time he purchased a new property.

He had valued the convenience of this relationship and operated with the belief the lender had his best interests at heart. Now that he had now surpassed their lending parameters, he was open to exploring new alternatives.



Lack of borrowing capacity and uncertainty regarding the loan structure (debt configuration).

In addition, the interest rate on the loans had become uncompetitive as the lender had not reviewed or repriced the loans since the last property acquisition.


The first step was for the Broker to determine the structure of the loans – that is, the specific loan amount secured against each property. With the client’s authority, the Broker liaised directly with the lender to determine exact figures which he then presented to the client in a simple Portfolio diagram.

Valuations of all existing properties were ordered to determine the current market value which in turn revealed the exact equity available in each property.

After carefully reviewing the client’s income and liability position, the Broker then presented a two-stage loan proposal to the client as follows:

Stage 1:

Refinance all existing debts to a more competitive non-major lender.

Establish a new Equity Release loan ($125,000) with this lender under their more generous borrowing guidelines. This loan would be used as the deposit for the next investment property.

Stage 2:

Obtain a loan approval from a Tier 3 lender that allows all of the existing loans to be assessed at the actual repayment amount, rather than a higher benchmark rate set by the lender. Under this policy, the loan on the sixth investment property would be comfortably approved.


The Broker was able to achieve the following for the client:

  • Refinanced all the loans to obtain a new 30 year loan term and 5 year Interest only period
  • Generated savings of more the $16,500 per year by accessing cheaper interest rates
  • Allow the client to grow his Investment Property Portfolio to six properties
  • Provide a clear and easy Portfolio Diagram that benefited the client (and his accountant)
Vision Finance cannot be commended enough for their diligence, hard work, responsiveness and friendliness in working through what was a difficult transaction with two banks. We’ve achieved an optimal outcome that will save us thousands of dollars per annum. I would highly recommend them to anyone looking to finance (or re-finance) an existing property. They certainly have a returning customer here.