Borrow using equity in home for future property purchase

Discussion in 'Loans & Mortgage Brokers' started by charli, 5th Jul, 2020.

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  1. charli

    charli Member

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    16th Sep, 2016
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    Brisbane
    Hi all,
    Have been thinking about this today and will talk with my broker tommorow but know that many here will be able to let me know if it’s even at all possible.

    Is it possible to borrow around 600k utilising the equity available in my home and to have it sitting in bank account as cash for future property purchase?

    I ask this due to the length of time it can take in the current climate for loans etc. I would rather have cash already sitting in account ready to purchase. Is this possible?
     
    charli, 5th Jul, 2020
    #1
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if you have the equity, and serviceability, getting cash out to an 80 % lend to your PPOR available equity is usually doable, for the deposit and costs

    We would typically do a valuer shop if equity is tight

    What is the PPOR value and loan amount pls

    ta
    rolf
     
    Rolf Latham, 6th Jul, 2020
    #2
  3. charli

    charli Member

    Joined:
    16th Sep, 2016
    Posts:
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    Location:
    Brisbane
    Hi Rolf,

    Thanks. PPOR is val at $1.2mil with loan of $240K. We intend to keep this property for the long term future as its our home.

    We have deposit already but if we can get out loan in equity (need $600k) to me its like we are cash buyers ready to go. That may not be the case and it may just be wishful thinking on my behalf. Are equity loans more expensive?
     
    charli, 6th Jul, 2020
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
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    10,654
    Location:
    Gold Coast (Australia Wide)
    Thanks

    Subject to servicing sounds doable, but perhaps not an optimal structure for future goals - not enough data

    How fast do u want to settle ?

    ta
    rolf
     
    Rolf Latham, 6th Jul, 2020
    #4
    fritzsticker likes this.
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