April 2021: refinancing into the bottom of the cost curve

A $700,000 investment loan refinanced from 4.10% IO to 1.89% fixed saved $15,400 per year in interest. Across a five-property portfolio that's $77,000 of restored serviceability — enough to support an additional acquisition of roughly $500,000.

Sky News viewers kept calling in asking 'is it worth the hassle?' For anyone with a portfolio above $1M, the answer was unambiguously yes. The refinance window April–October 2021 was the most lucrative twelve weeks for IO investors in a decade.