Cash out & equity release
Use the equity in your property to fund renovations, an investment, your business or another purpose.
Common uses
Renovations
Improve or extend your home.
Investment
Use equity as a deposit on the next property.
Business funding
Fund your business using property security.
Debt consolidation
Pay out higher-interest debts.
How lenders assess an equity release
Releasing equity means borrowing against the value you have built in your property. Lenders look at the property, your capacity and the purpose.
Usable equity
Usable equity is usually up to 80% of the property’s value, less what you owe. Borrowing more may mean LMI.
The valuation
The lender’s valuation sets your equity and it can differ from online estimates.
Purpose of the funds
Renovations, investment, business funding and debt consolidation are all assessed and some need more evidence than others.
Serviceability
You need to show you can afford the larger loan at the lender’s assessment rate.
Loan structure
Keeping the cash out in its own split means you can track it, especially if the interest may be tax deductible.
Your existing loan
Fixed-rate loans may have break costs if you change lenders to release equity.
WHO IT SUITS
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Fix these first
These are the issues that most often slow an application down, and what to do about each one.
- Relying on an online estimate
Get a property report or appraisal first and expect the lender’s valuation to be more conservative.
- Purpose not documented
Have quotes, a contract or a business plan ready to support what the funds are for.
- Purposes mixed in one split
Use separate loan splits for different purposes so you can track the interest on each.
- Not checking your current lender
Your current lender may increase your loan without a full refinance and we compare both.
- The tax side forgotten
Talk to your accountant before using equity for investment or business, as the use of funds affects deductibility.
How much equity can I access?
Usually up to 80% of your property's value, less what you owe, without lenders mortgage insurance. Some lenders go higher with LMI, and your income and the lender's policy also matter.
Do I need to state the purpose?
Yes. Lenders ask how cash-out funds will be used and some purposes have limits.
Can I use home equity for my business?
Often, yes. It is a common way to fund a business at a lower rate than unsecured lending.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.