Your investment property’s performance isn’t only about rental income — it’s also about how efficiently your loan is working for you.
In 2025, with changing interest rates and lending policies, now is the perfect time for Victorian property owners to give their mortgage a proper health check.
1. Review Your Interest Rate and Loan Type
Start by comparing your current rate to what’s available in today’s market. Even a small difference — say 0.25% — can save thousands of dollars over the life of your loan.
Check whether your mortgage is fixed, variable or split.
- Fixed loans offer stability, useful if you want predictable cash flow.
- Variable loans may provide flexibility to make extra repayments or access offset accounts.
- Split loans balance both advantages.
If you haven’t reviewed your rate in over a year, you might be paying more than you need to.
2. Assess Your Loan Features
Modern investment loans often include features that can help you manage cash flow and tax efficiently:
- Offset accounts to reduce interest on your principal
- Redraw facilities for maintenance or renovation funds
- Interest-only periods to improve short-term cash flow
Ensure you’re using these tools to your advantage. If your loan lacks flexibility, refinancing could open more suitable options.
3. Re-evaluate Your Loan-to-Value Ratio (LVR)
Property values in Melbourne have shifted significantly over the past few years.
If your property’s value has increased, your LVR may have dropped — meaning you could now qualify for a better rate or remove lender’s mortgage insurance (LMI) premiums on a refinance.
A property manager can provide a current rental appraisal, helping you present updated figures when speaking to your broker or bank.
4. Check If Your Investment Strategy Has Changed
If you’ve added new properties, shifted from residential to commercial, or adjusted your long-term investment goals, your loan structure should reflect that.
Aligning your mortgage with your strategy ensures your cash flow supports both your property’s maintenance and your overall portfolio growth.
5. Reconfirm Your Expenses and Deductions
A mortgage health check isn’t just about interest rates.
It’s a great time to review your rental income, expenses, and potential deductions before the next financial year.
Your property manager can supply detailed statements to make sure your accountant has everything they need to maximise your tax efficiency.
6. Seek Professional Guidance
Don’t rely solely on online calculators. Mortgage brokers and property managers familiar with Melbourne’s investment landscape can give you real-world insights — not just numbers.
They’ll help you understand whether refinancing or restructuring will genuinely boost your returns.
The Bottom Line
A regular mortgage health check keeps your investment property financially fit and aligned with your goals. Even small adjustments can mean lower repayments, better cash flow, and higher returns.
At RENTED Property Management, we help property owners across Melbourne maximise their investment performance.
From accurate rental appraisals to detailed end-of-financial-year reports, our team ensures you have the information you need to make confident financial decisions.
Ready to review your property’s performance?
Speak with our team today and discover how expert property management can protect and grow your investment.
