Get the Money You Need with a ‘Cash Out Home Loan'
Another way to obtain a loan from a bank is through a ‘cash out’ home loan. This type of refinancing will allow you to unlock a certain percentage of your property’s equity so you can get money you need for home renovations, purchase of a new car, or even buying a property for investment. A cash out home loan is popular among Australian homeowners who have seen significant increase in the value of their properties. Shop Your Own Mortgage can help you find the most suitable provider of a refinance home loan cash out. Call us on 1 300 256 081 so our team of refinance specialists can start the initial
How much equity can I cash out from my home?
Each cash out loan provider has its own set of rules but most lenders will allow you to unlock up to 80% of property value.
So for example, if your property is worth $1.5 million, then you may be entitled to cash out
$1.2 million. The cash out is usually released into your bank account, an offset account, or as a line of
But remember, the amount of equity you can unlock will still depend on the valuation performed by your lender, which is sometimes lower than the homeowner’s expectation. Some lenders may also require additional documentary requirements because of the risk of the cash out not being used for the declared purpose.
What is the Current Interest Rate for a Cash Out Home Loan in Australia?
The prevailing range of interest rate among Australian mortgage lenders is as low as 2.55%
to as high as 3.04%per annum.
Take note that the interest rate varies so you have to check with our refinancing specialists to know how much a certain lender will charge over your home loan.
Also bear in mind that you will pay off your cash out home loan over a specific term (5, 10,
15 years or even longer).
So you should consider if you really need a ‘cash out’ loan or other types of loans such as a debt consolidation loan or an investment property loan.
Shop Your Own Mortgage can help you assess if a cash out loan is the right option for you based on your specific circumstances.
How to Get a Cash Out Home Loan in Australia?
Each mortgage lender has its own application process for a ‘cash out’ home loan. But in general, the process looks like this:
- Assess your present financial situation, which includes your income sources, loan purpose, and your property’s current value and available equity
- Look around to find the most suitable deals. You may work with a cash out loan specialist such as SYOM so you can save a lot of time
- Submit your cash out home loan refinancing application
- Once approved, you can receive the proceeds to your bank account or as a line of credit
Obtaining a cash out home loan is a serious financial decision.
That’s why we also encourage you to consult with your accountant or financial advisor as part of the process.