Hi all, Just a quick question if someone familiar may be able to confirm. Looking to do a simple loan refi + cash out to 85-90% with CBA. Trying to get a confirmation from the broker prior to doing a credit check that the cashout will be okay, but he says that he can't find out until it goes to credit and need the application for this. Not too keen to push an application if it's not going to happen. Is that the case? Cheers
What's the cash out for? If a property get your broker to do a preapproval for the new purchase at the same time and you'll be sweet as long as everything else is acceptable.
What jess said. If it's to put on red at the casino, no. Buy a car? Probably. If it's $200k to do some 'non structural' renos, no.
Cash out above 80% isn't as straight forward at under 80% If the purpose is for a future property purchase then CBA will prob want to see a second application (pre approval) for that purchase. Cheers Jamie
Do Bankwest run a similar policy - and do they share assessment teams with CBA? ( my last cashout was with Bankwest @ approx 70% about 4 months ago, looking to take it to 80% or 85% next year to put towards development )
Different Bwa is worse - having said that I do bugger all business with them so things may have changed
Thanks. Might explain why a cashout to 70% was applied last time. That was a refinance away from another bank. Are the banks more lenient once you have a good track-record with them?
Generally I find CBA will do a refi + cashout to 90% with no evidence or pre-approval required. If it's an existing security, they will require the pre-approval/evidence before they will allow it to complete. As per Bankwest, they're historically been quite rubbish for investment friendly policy - however they've started tweaking a few things which have been interesting. You should be able to do a release up to 80% with them without too much trouble so long as you have sufficient servicing.
They're also very good for mucking about with the loan post settlement. One of the best I've dealt with actually.
Something else to keep in mind is if the property is over 1M then CBA have to go to LMI lender for approval and depending on the market they may push back, we got knocked back going to 88% last year on a Syd property, max they would do was 85% citing "market conditions"
Cash out over 80% is always a bit trickier, especially if it needs to go to the insurer. For more 'average' priced properties it's not as big a deal.
Looking to get cash out at 80% at the moment. CBA Valuer came this morning - from what I'm reading here it shouldn't be too much of a problem?
I recently had a CBA assessor try and condition the release of funds on an 88% deal to the pre-approval (i.e. control funds and release once security is found). I believe she was a WA assessor. She budged when i said the client needed the funds to fund the deposit and there's generally a short window to do this in NSW (5 days), but it was interesting to see the condition there in the first place. It was for an internal equity pull at 88 with a pre-approval in place for the next purchase. Point is, for equity releases in LMI space, it does generally work, but its not bullet proof. At 80% its always fine with plenty of lenders and definitely with CBA. Above 80%, still find ANZ the best and most consistent (if you can bear the long wait times right now!)
I've found they do that too - usually just an explanation why it's not okay is enough to make them fund prior to purchase.
