When Green Square Investors Should Reprice Or Refinance Their Unit Loans

For Green Square investors, you should reprice or refinance your investment loan when your rate sits roughly 0.40–0.60% above sharp investor deals, your cashflow fails a 3% rate rise stress test, or your current lender’s policy blocks your next move. The decision is less about chasing every 0.05% and more about net benefit after costs, buffers and risk.

Here’s a tight framework Green Square and Zetland investors can use to decide, and act, this week.

Start with your current rate, structure and a simple stress test.

Step 1: Work out if you’re actually overpaying

Quick rate and repayment sense‑check

1. Find your real rate – check your last statement, not the app tile.
2. Compare to the market – look at a few major lenders’ advertised investor P&I and IO rates as a guide only (actual offers are often lower).
3. Flag a review if you’re more than ~0.40–0.60% above what good borrowers with similar LVRs are getting.

As a rule of thumb, a 0.50% rate gap on a $700,000 Green Square investment loan is often worth fighting for.

Worked example: $700k Zetland investor loan

Assume:

• Loan: $700,000, interest‑only, 25 years remaining
• Current rate: 6.60% p.a.
• Target rate: 6.10% p.a. (0.50% lower)

Monthly interest at 6.60% ≈ $3,850. Monthly interest at 6.10% ≈ $3,558.

Indicative saving: ~ $290 per month, or ~$3,480 per year before tax.

If switching lenders costs ~$2,200 in discharge, registration and legal costs, you’d usually want at least 2–3 years of likely savings or other structural benefits to justify a full refinance.

Step 2: Reprice or refinance – which first?

Most Green Square investors should try repricing before refinancing. It’s lower effort and preserves your existing structure.

Repricing with your current lender

You should request a reprice when:

• You’re loyal but not lazy – you haven’t asked for 12+ months.
• Your LVR is now under ~80% based on a realistic value.
• Competitors are advertising significantly better investment rates.

Repricing is usually a phone call or online request: “I’m seeing sharper rates for similar investor profiles; what can you do to keep me?”

Refinancing to a new lender

Refinance instead of reprice when:

• Your lender won’t move and you’re clearly 0.40–0.60%+ above market.
• The current structure (e.g. cross‑collateralisation) is blocking other moves.
• You’re rolling off a high fixed rate with no competitive revert option.
• You want features your current bank can’t deliver (multiple offsets, cleaner splits).

If your bank has already said no to a refinance or restructure, get the decline reasons in writing, then work through the options in /insights/bank-said-no-investment-refinance-what-to-do.