CBA equity release to 90%

As per the thread title, can anyone advise of CBA's policy regarding equity releases? We've currently got a 90% loan on an IP we're renovating (settled in mid November). Would like to reval mid next year and release equity back up to 90% for another deposit if possible.

 

Cba don't have a set cash out policy but you can expect them to ask lots of questions about what the cash will be used for. They may want to see a contract of sale and end debt servicing.

 

At 90% they will most definitely require proof of funds. Even at 80% LVR CBA's cash out policy is weak when compared with a lot of other lenders.

 

is wanting to put money into super accepted as an answer re what the money will be used for? or does the specific use/plan need to be detailed?

 

Thanks for the responses. End debt servicing shouldn't be a problem. Is it possible to request a valuation prior to requesting the equity release? Before we go searching for another property we would need to know what the reval would be to work out our new LVR, what we would need to ask from the cashout and our final LVR.
Thanks again!

 

Do you have a plan B if they come back with a low val? (I copped a low value from CBA earlier this year however the property is in a holiday home area with low comparable sales).

@Jess Peletier will probably know what to expect based on the location of the property.

 

They will most likely ask for a financial planner or accountant's letter confirming this. At 90% LVR and in these lending conditions will be a hard sell.

 

Most lenders including CBA allow for upfront valuations - you shouldn't submit an application until you have done an upfront valuation plus its free!

Couple of important points re what you plan to do:

1. Do not cross the loans
2. Do not do a "top up" on the existing loan - instead create a separate loan account/facility
3. Run the numbers to see what your servicing will look like on the end position and also work your budget.

Your banker or broker is responsible in doing all of the above.

 

Ok thanks. Just trying to understand what can and cannot be accepted for plans for funds.

Financial planner or accountants letter is fine, this is someone in the pension phase of his super and has maxed out previous years NCC so it wouldnt be a hard sell.

 

Not easy but it's possible.

As Shahin mentioned - they will require proof.

You *might* get by if you also submit a preapproval for the intended purchase at the same time. That's how I got away with the most recent 90% top up for a client with CBA.

Cheers

Jamie

 

I'm with CBA and wanted to do some landscaping and a deck/pergola, so got quotes for everything, got a valuer to do an on-completion valuation which was basically the current value plus the cost of the works, and now CBA are funding it all to 90% of the final value via a construction loan. Given they don't really like doing cash out like others have said, this might be the easiest way to go.