Cash out is when you release the equity from your home using a home equity loan.

The funds are released directly to you when your mortgage is refinanced rather than to your solicitor as part of a property purchase.

Alternatively, the money can be released to another lender to consolidate any debt you have.


Can I get cash out?

  • You can borrow up to 80% of the value of your property if you can provide a stated purpose (no evidence required).
  • You can release up to 90% of the property value with evidence of the use of the funds.
  • There is no limit on the amount that can be released.

Please call us on 1300 889 743 or enquire online and we’ll work out which lender can assist you with your plans.


What is cash out?

Any home loan which has the funds released to you directly is considered to be cash out by the banks. Some banks will decline your application due to the amount of equity being released and what your intentions are.

Some examples are:

  • Minor cosmetic renovations.
  • Debt consolidation.
  • Investment in shares.
  • Releasing equity to use as a deposit on your next property.
  • Buying a business or for investment in your business.

Whereas other types of loans aren’t considered to be cash out, and so are not subject to restrictions:

  • Construction loans.
  • Funds to purchase a specific property with a signed contract as evidence.
  • Refinancing an existing home loan.

How much cash out is acceptable?

Most lenders require evidence of the purpose of the loan if you’re 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 don’t 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, if your home is worth $1.25 million then 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 won’t use the funds according to your intended purpose. Some people may use the money to make the loan repayments because they’re living beyond their means.


Can I release equity 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!

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.

Discuss your investment goals with us on 1300 889 743 or enquire online.


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 won’t help you to get a loan unless there’s a clear benefit to you, and a low risk that you’ll misuse the funds.


How can I apply for a cash out loan?

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

  • Gabriella

    Hey, I wanted to enquire whether a cash-out for a business loan is possible or not?

  • Hi Gabriella, if you have enough equity in your property you could increase your loan to get a cash out for business purposes.

  • Fiona

    Hi, I was just wondering if my partner could release cash from his house to give to his brother to help him buy a property? If so how much is possible? The house is worth $600,000
    Thanks,
    Fiona

  • Hi Fiona,
    Yes we can do this in two different ways. We can release equity usually up to 80% of the value of his property, but up to 90% in some cases. E.g. if he owes $300,000 then he could release up to $480,000 (80% of $600k) which would mean he could give his brother $180,000 to use towards his house.

    The more common method we use is a guarantor loan. This is regularly used by parents helping their children but some lenders allow it to be used by a brother. https://www.homeloanexperts.com.au/guarantor-home-loans

  • Bromilow

    I want to refinance and cash out approx. $150k to use to invest in a house.

  • Hey Bromilow, please complete our free online assessment form and one of our expert mortgage brokers will contact you shortly:
    http://www.homeloanexperts.com.au/free-quote/

  • betty

    May I please get a list of some of the lenders that you deal with or who are on your panel? I have to do some sorting and planning before I apply.

  • Hi betty,
    You can check them out on our lenders page. Here’s the link to that:
    https://www.homeloanexperts.com.au/about_us/lenders/

  • Elijah

    Hello. I bought a property a while back before I met my then future-wife so I would like to know if I’m allowed to add her in to the title of the property.

  • Hey Elijah,

    Yes, you can add your partner to your property title to make you the joint owners of the property but they need to have an interest or share in the property. The existing loan may also need to reflect this new ownership structure, which means that the loan may need to be refinanced. You can find out more about this here:
    https://www.homeloanexperts.com.au/managing-your-home-loan/adding-partner-to-property-title/

  • kennedy

    I need to cash out at 50% a 330 acre property that is valued at around $3 million. The properly is partially rented out so hope this won’t be a problem.

  • Hi kennedy,
    We have on our mind a few lenders that may be able to help with this but we’ll need more information to properly assess your situation and recommend the best available lenders for you. Please call 1300 889 743 and speak with one of our cash out specialists to find out your options.