Investment Property: Multiple Refinances in FY for Cash Backs

Goldsmen on 09/06/2025 - 17:10
Last edited 09/06/2025 - 17:22 by 1 other user

I’m new to property investing and recently turned my PPOR into an investment property for negative gearing. I have a question about cash backs as I was thinking about this from next financial year.

Currently, there are some good offers for cash backs. Is it a problem for accounting side of things if I refinance the investment property multiple times in a financial year to take advantage of the benefits? For example, IMB has $4,000 cash back at the moment. In three months, I go elsewhere for another $3-4k and then repeat this process. Assuming I do this 3-4 times a year and collect $10,000 to $16,000 in cash backs depending on the offers, does this create any headaches from an accounting or ATO perspective?

I’m curious if anyone else does this for their investment properties multiple times a year. The loan is $750k for an investment property, just see this as a way to save money. I don’t mind the headache of refinancing myself.

Financial Cashback Investment Loan Loan

Comments

  • Drakesy on 09/06/2025 - 17:14
    +7

    Don't forget the early cancellation and admin fees, they can quickly eat away any cashbacks.
    A lot of the time the ones with the cashback will look to recoup the loss in the form of higher interest rates.

    • Goldsmen on 09/06/2025 - 17:31

      I’ve looked into this, but if the cash back is around $3-4k, given the loan size of $750k, you still come out ahead after the discharge fees, etc.

  • McMaferMur on 09/06/2025 - 17:27
    +4

    And some broker will want you to stay for 2 years otherwise how they can buy rice to eat….

    • Goldsmen on 09/06/2025 - 17:29

      Wouldn’t be doing it through a broker would be doing it myself as they would get a clawback which isn’t fair.

      • McMaferMur on 09/06/2025 - 17:32

        Some offer extra ontop of bank gives if you go direct. Up2u

      • Protractor on 10/06/2025 - 11:26
        -2

        What ? So benefiting from NG is fair, but you paying your way to wealth isn't?

    • mrvaluepack on 10/06/2025 - 13:53
      +3

      Its not counted. Dont do that.

  • spiff on 09/06/2025 - 17:33
    +1

    I don't think it is assessable income from a tax perspective but best to check with your accountant.

    Allow around $800 in costs to transfer. I normally don't bother for cashbacks less than $3000 for this reason.

    Also factor in things like offset account availaibility if you need it, and if you have amounts in that offset account then you want to line up that transfer to the new offset account to minimise interest cost which will also eat into your cashbacks.

    $750k is a good amount which would alllow you to get access to the maximum cashback most of the time.

    The ongoing interest rate doesn't matter as much if you intend to refinance often. That being said, IMB do offer very competitive rates lower than the Big 4.

    • Malik Nasser on 09/06/2025 - 19:30
      -2

      The ongoing interest rate doesn't matter as much if you intend to refinance often.

      If each new loan is 1% above the best rate you could have got, then on the $750k loan, it adds up to $7.5k per year.
      With the $12k-16k cash back, and deducting the $7.5k extra loan interest, that leaves $4.5k-$8.5k.
      Then there are all the fees which reduce this further.

      In short, you need to account for all costs.
      Run the numbers and see how it works out.

      • spiff on 09/06/2025 - 19:53
        +1

        Of course at 1% discrepancy the numbers will blow out. But out of the banks that are offering cashbacks, the rates don't appear to be this far apart and can likely be negotiated to be within spitting distance of each other.

        In my recent experience I have refinanced for an increase of less than 0.1%.

        • Goldsmen on 09/06/2025 - 20:44

          The plan wouldn’t be to refi on a rate that’s not too far apart from the current variable, and the aim is for $4k cashback.

          First move that allows $4k cash back on a $ 750k loan is Regional Australia Bank for $4k cashback. Once paid, then move to IMB for $4k cashback. Ideally, if four can be done, $16k minus fees net gain would be around $10k+ minimum from my calculations on a $750k loan, which is not bad. Again this is just rough numbers.

        • kiitos on 10/06/2025 - 10:18

          What's the discrepancy between cashback banks and banks not offering cashbacks?

          • spiff on 10/06/2025 - 11:17

            @kiitos: I don't know, I haven't spoken to every single bank. But the rate you see advertised can be negotiated dependent on your LVR.

    • foxes28 on 10/06/2025 - 11:45

      Was looking into IMB last month but decided to go with another bank as IMB has application and processing fees which eat up significant portion of the cashback

    • fredblogs on 10/06/2025 - 22:30

      Another factor is if you have more than 250k in offset - you'd want to go with a lower risk bank due to the $250k bank guarantee

  • WoodYouLikeSomeCash on 09/06/2025 - 17:41
    -3

    Credit score would tank.

    • Ponsonby on 09/06/2025 - 19:35

      Do not rely on that particular "community' tax advice

  • Dollar General on 09/06/2025 - 19:30

    You will get declined very early in the process

  • JIMB0 on 09/06/2025 - 20:05

    Why not do it every month? See if you can find the limit of free money the banks are willing to hand out.

    • Goldsmen on 09/06/2025 - 20:32

      That’s why I wanted to know if anyone does this frequently. What’s the experience like? I’ve run the numbers, and if there are $3-4k cashbacks four times a year, there’s a significant net benefit after fees and discharges, etc.

      I don’t think it’s possible every month, unless someone has done it before. It would be great to hear from someone who has. Would be nice to collect $36-48k a year in cashbacks.

    • foxes28 on 10/06/2025 - 10:43

      Not possible (1) there's only a few banks offering cashback at the moment and (2) the cashback can take up to 2 months to be credited

      • spiff on 10/06/2025 - 11:19

        That's right, there aren't many banks offering $3-4k. $2k makes you question whether the effort is worth it. They also may have clauses which limit you to only getting cashback once per loan, or one cashback every 12 months. So it's unlikely you can cycle back to the same bank in the short term.

  • star-ggg on 09/06/2025 - 20:06

    Depends on whether you intend on maxing out your borrowing capacity. Every lender has different maxes which I've found can range up to 25%.

  • Gotchas on 09/06/2025 - 21:19
    +1

    Investment loans attract higher interest rates - the banks won’t lend to you once they catch on to it

    I recall some comments in the past that 3 times per year is max - might of changed now

    Break costs will be tax deductible- also add yearly fees of about $400 per year per institution

    Compare the market offered a few k on top of cash backs

  • SlickMick on 10/06/2025 - 10:38

    This is a good point. OP may come out ahead just keeping original loan.

    I trust that OP has a reason for not keeping PPOR. CGT undermines investment efforts.

  • Protractor on 10/06/2025 - 11:24

    You are rich enough to invest, so pay for an accountant. Or would you like tax payers to fork out 100% for that too?

    • Some Guy on 10/06/2025 - 13:43

      They already do. Fees for a tax professional to manage your tax affairs are deductible the following year.

      • Protractor on 10/06/2025 - 14:10

        My point. The difference between investor and greedy investor is written in the wind forum pages.

        • Some Guy on 11/06/2025 - 09:24

          Your point is misplaced on this website.

          • Protractor on 11/06/2025 - 09:50

            @Some Guy: FTFY
            Your point is misplaced on this website. in Boganland Australia

  • Ultramup on 10/06/2025 - 11:41
    +3

    Have done it multiple times over multiple loans, about 6 months apart though as your credit file shows how frequent you do it. Your credit score will drop alot if you ever get declined. Also if possible close credit cards before applying - I find it helps alot especially when cashing out.

    • Gotchas on 10/06/2025 - 19:58

      Did you do for PPOR or investment ? If investment did you get PPOR rates and was it easy to achieve?

      Thanks

      • Ultramup on 10/06/2025 - 20:02

        Both. Inv rates for IP, OO rates for PPOR. Cant really do OO for IP unless u have a creative broker

  • mrvaluepack on 10/06/2025 - 13:53
    -1

    No & No

Login or Join to leave a comment
Login Join