Case Study: Expat Investor Refinance – The Value of Reviewing Your Mortgage
We were recently approached by a new client—an Australian expat investor—who had been with their Big 4 lender for five years. Despite maintaining their investment property loan without issue, they had the sense that they were no longer receiving a competitive rate, and wanted to understand their options.
Originally, their loan was set up with an 80% loan-to-value ratio (LVR). Over time, with steady repayments and some capital growth in the property market, they suspected the LVR had improved but weren’t sure how this impacted their lending position or if it could lead to better terms.
What We Discovered
We arranged for a full property valuation and confirmed that the property was now worth $2 million. With a current loan balance of $1 million, their updated LVR had reduced to 50%—a significant shift that changed the risk profile of the loan.
This improvement meant they were now eligible for better pricing from a number of lenders, especially as an investor with a lower LVR.
The Outcome
After reviewing a range of suitable lending options, we were able to help the client refinance to a new lender who offered a rate of 5.69%—a more than 1% lower rate than what they were previously paying.
Here’s the difference in monthly repayments between a 5.69% and 6.69% interest rate on a $1,000,000 loan over 30 years (principal & interest):
🔹 At 5.69%
Monthly Repayment: $5,783
🔹 At 6.69%
Monthly Repayment: $6,432
🔻 Difference:
That’s $649 more per month
Or $7,788 more per year
What did we do?
Reassessing the client’s position,
Recognising how the lower LVR reduced the perceived risk, and
Sourcing a more appropriate offer from another lender.
Key Takeaways
This case highlights a few critical points:
Lenders don’t always reward loyalty – even if your financial position improves, your existing bank might not offer you a better deal unless you ask (and even then, the options may be limited).
Capital growth can work in your favour – a lower LVR often gives borrowers access to sharper rates, but this won’t happen automatically.
Regular reviews are essential – it’s worth reviewing your mortgage every 2 years, or after any significant financial or property-related changes.
A Note for Expat Borrowers
Expat lending policies have evolved in recent years, and while there are still some limitations, there are increasingly competitive options for Australians living abroad, especially for those with lower LVRs and strong financial positions.
If it’s been a few years since your last review, it may be worth checking whether your current loan is still aligned with your needs—and whether your rate still reflects your actual risk profile.
The information contained is general information only and does not consider your personal objectives, financial situation and needs. We strongly recommend that you do not act on any information provided in this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.
The Expatriate always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.
