diff --git a/cmd/clusterctl/client/client_test.go b/cmd/clusterctl/client/client_test.go
index f762aa4a31b2..59511367ced2 100644
--- a/cmd/clusterctl/client/client_test.go
+++ b/cmd/clusterctl/client/client_test.go
@@ -418,7 +418,13 @@ func (f *fakeTemplateClient) Get(flavor, targetNamespace string, listVariablesOn
 	if err != nil {
 		return nil, err
 	}
-	return repository.NewTemplate(content, f.configVariablesClient, f.processor, targetNamespace, listVariablesOnly)
+	return repository.NewTemplate(repository.TemplateInput{
+		RawArtifact:           content,
+		ConfigVariablesClient: f.configVariablesClient,
+		Processor:             f.processor,
+		TargetNamespace:       targetNamespace,
+		ListVariablesOnly:     listVariablesOnly,
+	})
 }
 
 // fakeMetadataClient provides a super simple MetadataClient (e.g. without support for local overrides/embedded metadata)
diff --git a/cmd/clusterctl/client/cluster/template.go b/cmd/clusterctl/client/cluster/template.go
index fd72d2a42317..6d155b0fc2e6 100644
--- a/cmd/clusterctl/client/cluster/template.go
+++ b/cmd/clusterctl/client/cluster/template.go
@@ -99,7 +99,13 @@ func (t *templateClient) GetFromConfigMap(configMapNamespace, configMapName, con
 		return nil, errors.Errorf("the ConfigMap %s/%s does not have the %q data key", configMapNamespace, configMapName, configMapDataKey)
 	}
 
-	return repository.NewTemplate([]byte(data), t.configClient.Variables(), t.processor, targetNamespace, listVariablesOnly)
+	return repository.NewTemplate(repository.TemplateInput{
+		RawArtifact:           []byte(data),
+		ConfigVariablesClient: t.configClient.Variables(),
+		Processor:             t.processor,
+		TargetNamespace:       targetNamespace,
+		ListVariablesOnly:     listVariablesOnly,
+	})
 }
 
 func (t *templateClient) GetFromURL(templateURL, targetNamespace string, listVariablesOnly bool) (repository.Template, error) {
@@ -112,7 +118,13 @@ func (t *templateClient) GetFromURL(templateURL, targetNamespace string, listVar
 		return nil, errors.Wrapf(err, "invalid GetFromURL operation")
 	}
 
-	return repository.NewTemplate(content, t.configClient.Variables(), t.processor, targetNamespace, listVariablesOnly)
+	return repository.NewTemplate(repository.TemplateInput{
+		RawArtifact:           content,
+		ConfigVariablesClient: t.configClient.Variables(),
+		Processor:             t.processor,
+		TargetNamespace:       targetNamespace,
+		ListVariablesOnly:     listVariablesOnly,
+	})
 }
 
 func (t *templateClient) getURLContent(templateURL string) ([]byte, error) {
diff --git a/cmd/clusterctl/client/cluster/template_test.go b/cmd/clusterctl/client/cluster/template_test.go
index 628961596235..c71d2ea0e0f7 100644
--- a/cmd/clusterctl/client/cluster/template_test.go
+++ b/cmd/clusterctl/client/cluster/template_test.go
@@ -143,13 +143,13 @@ func Test_templateClient_GetFromConfigMap(t *testing.T) {
 			}
 			g.Expect(err).NotTo(HaveOccurred())
 
-			wantTemplate, err := repository.NewTemplate(
-				[]byte(tt.want),
-				configClient.Variables(),
-				processor,
-				tt.args.targetNamespace,
-				tt.args.listVariablesOnly,
-			)
+			wantTemplate, err := repository.NewTemplate(repository.TemplateInput{
+				RawArtifact:           []byte(tt.want),
+				ConfigVariablesClient: configClient.Variables(),
+				Processor:             processor,
+				TargetNamespace:       tt.args.targetNamespace,
+				ListVariablesOnly:     tt.args.listVariablesOnly,
+			})
 			g.Expect(err).NotTo(HaveOccurred())
 			g.Expect(got).To(Equal(wantTemplate))
 		})
@@ -360,13 +360,13 @@ func Test_templateClient_GetFromURL(t *testing.T) {
 
 			g.Expect(err).NotTo(HaveOccurred())
 
-			wantTemplate, err := repository.NewTemplate(
-				[]byte(tt.want),
-				configClient.Variables(),
-				processor,
-				tt.args.targetNamespace,
-				tt.args.listVariablesOnly,
-			)
+			wantTemplate, err := repository.NewTemplate(repository.TemplateInput{
+				RawArtifact:           []byte(tt.want),
+				ConfigVariablesClient: configClient.Variables(),
+				Processor:             processor,
+				TargetNamespace:       tt.args.targetNamespace,
+				ListVariablesOnly:     tt.args.listVariablesOnly,
+			})
 			g.Expect(err).NotTo(HaveOccurred())
 			g.Expect(got).To(Equal(wantTemplate))
 		})
diff --git a/cmd/clusterctl/client/repository/template.go b/cmd/clusterctl/client/repository/template.go
index 5b61e52802ac..4b1801cca1c2 100644
--- a/cmd/clusterctl/client/repository/template.go
+++ b/cmd/clusterctl/client/repository/template.go
@@ -70,28 +70,29 @@ func (t *template) Yaml() ([]byte, error) {
 	return utilyaml.FromUnstructured(t.objs)
 }
 
+type TemplateInput struct {
+	RawArtifact           []byte
+	ConfigVariablesClient config.VariablesClient
+	Processor             yaml.Processor
+	TargetNamespace       string
+	ListVariablesOnly     bool
+}
+
 // NewTemplate returns a new objects embedding a cluster template YAML file.
-// TODO: Refactor to reduce the number of args passed in.
-func NewTemplate(
-	rawArtifact []byte,
-	configVariablesClient config.VariablesClient,
-	processor yaml.Processor,
-	targetNamespace string,
-	listVariablesOnly bool,
-) (*template, error) {
-	variables, err := processor.GetVariables(rawArtifact)
+func NewTemplate(input TemplateInput) (*template, error) {
+	variables, err := input.Processor.GetVariables(input.RawArtifact)
 	if err != nil {
 		return nil, err
 	}
 
-	if listVariablesOnly {
+	if input.ListVariablesOnly {
 		return &template{
 			variables:       variables,
-			targetNamespace: targetNamespace,
+			targetNamespace: input.TargetNamespace,
 		}, nil
 	}
 
-	processedYaml, err := processor.Process(rawArtifact, configVariablesClient)
+	processedYaml, err := input.Processor.Process(input.RawArtifact, input.ConfigVariablesClient)
 	if err != nil {
 		return nil, err
 	}
@@ -105,11 +106,11 @@ func NewTemplate(
 	// Ensures all the template components are deployed in the target namespace (applies only to namespaced objects)
 	// This is required in order to ensure a cluster and all the related objects are in a single namespace, that is a requirement for
 	// the clusterctl move operation (and also for many controller reconciliation loops).
-	objs = fixTargetNamespace(objs, targetNamespace)
+	objs = fixTargetNamespace(objs, input.TargetNamespace)
 
 	return &template{
 		variables:       variables,
-		targetNamespace: targetNamespace,
+		targetNamespace: input.TargetNamespace,
 		objs:            objs,
 	}, nil
 }
diff --git a/cmd/clusterctl/client/repository/template_client.go b/cmd/clusterctl/client/repository/template_client.go
index a90dbe0d435d..a8d14ff3b913 100644
--- a/cmd/clusterctl/client/repository/template_client.go
+++ b/cmd/clusterctl/client/repository/template_client.go
@@ -95,5 +95,5 @@ func (c *templateClient) Get(flavor, targetNamespace string, listVariablesOnly b
 		log.V(1).Info("Using", "Override", name, "Provider", c.provider.ManifestLabel(), "Version", version)
 	}
 
-	return NewTemplate(rawArtifact, c.configVariablesClient, c.processor, targetNamespace, listVariablesOnly)
+	return NewTemplate(TemplateInput{rawArtifact, c.configVariablesClient, c.processor, targetNamespace, listVariablesOnly})
 }
diff --git a/cmd/clusterctl/client/repository/template_test.go b/cmd/clusterctl/client/repository/template_test.go
index 1af4263f0a2d..9ce045c6bb81 100644
--- a/cmd/clusterctl/client/repository/template_test.go
+++ b/cmd/clusterctl/client/repository/template_test.go
@@ -89,13 +89,13 @@ func Test_newTemplate(t *testing.T) {
 		t.Run(tt.name, func(t *testing.T) {
 			g := NewWithT(t)
 
-			got, err := NewTemplate(
-				tt.args.rawYaml,
-				tt.args.configVariablesClient,
-				tt.args.processor,
-				tt.args.targetNamespace,
-				tt.args.listVariablesOnly,
-			)
+			got, err := NewTemplate(TemplateInput{
+				RawArtifact:           tt.args.rawYaml,
+				ConfigVariablesClient: tt.args.configVariablesClient,
+				Processor:             tt.args.processor,
+				TargetNamespace:       tt.args.targetNamespace,
+				ListVariablesOnly:     tt.args.listVariablesOnly,
+			})
 			if tt.wantErr {
 				g.Expect(err).To(HaveOccurred())
 				return