What is cash out?

The funds are released directly to the borrower (rather than to their solicitor), so that they can purchase another property. Alternatively, the money can be released to another lender, to consolidate the borrowers debts.

What do the banks think?

Releasing cash out of equity is considered by the banks to be very risky! Read on to find out why, and how you can get approved.

Can I get cash out?

Some banks offer cash out, but it depends on your financial situation and the particular criteria to be applied to your situation.

Not every lender has a “cash out policy”! If you are having trouble releasing the equity from your home then please contact us on 1300 889 743 or enquire online and one of our specialist mortgage brokers can help you to find a lender to release your equity.

How much cash out is acceptable?

Most lenders require evidence of the purpose of the loan if you are releasing more than $10,000 to $50,000 as cash out. This requirement is particularly strict for people seeking a low doc loan.

Our best lenders only require you to disclose the purpose of your loan, but you do not have to provide evidence!

How much cash out can I release?

One of our lenders will allow you to release up to 90% of the value of your home, up to a maximum of $800,000 or up to 80% of the value of your home up to $1,000,000.

For example, where your home is worth $1.25 million, you may be entitled to borrow $1 million.

These funds can be released as either a Line of Credit, into an offset account or into your bank account to use as you see fit.

Why is “cash out” so risky?

When your equity loan is advanced by the bank, a large lump sum of money is released directly into your bank account or into a line of credit for you to use later.

Once this has been done, the banks no longer have any control over how you use those funds.

Banks are concerned that you will not use the funds according to your intended purpose. Some people may use the money to make the loan repayments because they are living beyond their means.

Cash out for investment purposes

The most common reason that people apply for an equity loan is to use the funds to invest in property or shares. This is one of our specialities!

Discuss your investment goals with us on 1300 889 743 or enquire online. We can recommend you a specific loan product, with no cash out restrictions and the features you need to get the maximum benefit out of your investments.

Our responsible lending commitment

We always endeavour to fully understand your needs and aim to offer you expert help to get the most suitable loan product available.

Our mortgage brokers are committed to responsible lending practices. We will not help you to get a loan unless there is a clear benefit to you, and a low risk that you will misuse the funds.

Apply for a cash out loan

Please enquire online or phone 1300 889 743 to speak to one of our mortgage brokers who specialises in releasing cash out with a home equity loan.