Cash out with refinance

Many lenders will now not allow cash out with a refinance unless the purpose is fully verified.

However, there are exceptions to this.

It may be possible for a customer to borrow <85% LVR for Cash Out purposes without any restrictions!

It may even be possible to allow Cash Out up to 20% of the value of the security for LVRs 85%-90%.

This is extremely popular for a borrower with untapped equity in an existing property who might be thinking of accessing funds for “Future Investment purposes.”

Scenario:
A young couple who have created equity in the owner occupied property who can currently service a debt up to 80% LVR, wish to access the equity for future investment purposes (i.e. Investment property or Managed funds)

Security
Residential Property = $900,000

Purpose:
Refinance Existing debt = $350,000
+
Cash out = $370,000 for “Future Investment Purposes” (no other evidence required – i.e. no Contract of Sale or letter from Accountant)

Total Loan = $720,000
LVR = 80%

Off course this is a full document loan, however it shows cash out with a refinance loans are still available without all the restrictions.

Further, these loans are available at normal home loan rates.

Want to know more, please call us.