How to Refinance After a Renovation to Grow Your Portfolio Faster
When you complete a renovation, you likely have equity. But how to use it effectively? Let’s talk about it.
Refinancing after a renovation is how you turn that new value into leverage and fund your next purchase without having to save from scratch for another deposit.
This step is the key to compounding results. It’s what turns a single renovation into a repeatable portfolio-growth system.
What does “Refinancing After Renovation” Mean?
Refinancing is when you re-value your property with a lender after your renovation is complete. The goal here - to access the increased equity you have created through Cashflow Hacking renovation.
For Example:
Purchase: $500k
Renovation cost: $80k
New value: $700k
Exisiting loan: $350k
Equity = New Value - Existing Loan
So in this scenario, the new equity would be $350k ($700k - $350k)
However, that doesn’t mean you can access all $350,000.
This is where the loan-to-value ratio (LVR) – often called the 70% rule – comes in.
What Is the 70% Rule?
When you refinance, banks limit how much you can borrow against your property’s total value.
For investment properties, most lenders will only lend up to 70% of the property’s value (sometimes slightly higher, but 70% is the conservative benchmark used across the industry).
This ensures you keep some equity in the property as a safety buffer and reduces the lender’s risk exposure.
How It Impacts Your Usable Equity
Let’s apply that to the example above:
• New value: $700,000
• Maximum lending (70% LVR): $490,000
• Existing loan: $350,000
Usable equity = $490,000 – $350,000 = $140,000
So even though the total equity is $350,000, only $140,000 of that can actually be accessed under the 70% lending rule.
That’s your usable equity – the amount you can refinance and draw down to fund your next property purchase or renovation.
“Your refinance is part of your project plan, not an afterthought. Each renovation is designed with the post renovation valuation in mind. ”
How Wolfe Property Supports You Through the Process
When you work with Wolfe Property, you’re not just getting a coach — you’re building a team.
Your mortgage broker is one of the most important people to bring on the journey. Having an open, upfront conversation with them early on allows you to align your goals and structure your lending strategy the right way from day one.
We help you and your broker work together to map out a long-term plan — so each property, renovation, and refinance builds toward your next move. The stronger that relationship, the smoother every deal becomes.
Common Refinance Mistakes to Avoid
Not engaging your broker early enough. Your broker is your strategic partner — they need to understand your long-term plan so they can help structure your lending around each stage
Using a valuer not approved by your bank. Each lender has a panel of registered valuers. If you order a report from someone outside that list, the bank may reject it — wasting both time and money.
Relying on non–first tier lenders without an exit plan. Short-term or non-bank finance can be a great tool to get a deal moving — but only if there’s a clear pathway back to a main bank once the project is complete.
