Refinance / Restructuring
What Security Is Required For Refinancing?
5 min read- Finance Guide
- Updated 2026
Quick answer
In most cases the main security is
The Property
Being refinanced, supported by a fresh valuation
- Primary security Mortgage over the property
- Core assessment Value, LVR, and policy fit
- Sometimes required Guarantee or extra security
1300 421 044
1300 421 044
Key security concepts in refinancing
Primary security property
Usually the property being refinanced — the lender registers a mortgage over it as security for the new loan
Valuation
A fresh valuation helps determine how much the lender is prepared to advance against that property
LVR
The loan to value ratio shows how much is being borrowed against the security value and directly affects policy options
Additional support
Some cases may require a guarantor, another property, or cash contribution where standalone security is not enough
Types of security lenders may consider
The exact security requirements depend on the property, the loan amount, and whether the application fits standard policy on its own.
Standard position
Property being refinanced
Most refinance loans are secured only by the subject property, provided value and policy are strong enough
Higher risk position
Additional property security
A second property may be offered where equity is low or the required loan amount is outside normal policy
Support option
Guarantee support
A guarantor may provide additional security in some scenarios, though this is more selective and policy driven
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What lenders review about the security
The new lender is not only checking the borrower. They are also checking whether the security is acceptable from both a value and risk perspective.
-
01. Current valuation and marketability of the propertyValue support
-
02. Title, zoning, condition, and acceptable useSecurity suitability
-
03. Total LVR after refinance and any equity releasePolicy fit
Common security issues when refinancing
Low valuation
If the lender values the property below expectation, the available security value may not support the refinance amount being requested.
Possible solutions include:
Reduce the
requested loan amount- Contribute cash to settlement
- Offer
additional security
Unacceptable security property
Some properties are harder for lenders to accept, including specialised assets, unusual titles, weaker locations, or properties with condition issues.
Possible solutions include:
- Target a lender
with broader policy
- Improve or document the property
- Use a more suitable
security property
Equity too tight
A refinance may not fit if there is not enough equity after costs, discharge figures, or any proposed cash out is included.
Possible solutions include:
- Lower the cash out
amount
- Wait for more equity or valuation uplift
- Consider a guarantee
or second property
Steps to assess refinance security
Step
01
Confirm which property will secure the new loan
Step
02
Estimate the likely valuation and resulting LVR
Step
03
Check title, property type, and any policy issues
Step
04
Decide whether extra security or a guarantee may be needed
Step
05
Submit the application and let the lender order valuation
Step
06
Complete approval, discharge of old mortgage, and registration of the new one
Speak with a Property Finance Specialist
Refinance security requirements can vary depending on the property type, equity position, title structure, and whether any extra funds are being requested.
A specialist can review the proposed security and help identify which lenders may be comfortable with it.
Speak with a finance specialist about your refinance security options.
Submit the short form below and a property finance specialist can review your security position and discuss possible refinance options.
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