Construction Loan, refinance and cash-out

Discussion in 'Investment Strategy' started by homeland, 7th Mar, 2021.

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  1. homeland

    homeland Active Member

    Joined:
    10th Mar, 2020
    Posts:
    39
    Location:
    Sydney
    Hi Guys,

    Been a while since my last post.

    We are checking options to do a 500k Reno to our PPOR, our LVR is 33% our loan broker confirm the bank will approve it (based on pre approval granted for new purchase/refinance). when new purchase i can calculate unlocked equity in our offset account see below, however not sure how to calculate cash out amount (the amount left in the offset for any use except of the construction loan) when you refinance and have a contraction loan?

    New Purchase
    Purchase price 1M
    Bank Valuation 900k
    Less 20% 720K
    Less Loan Amount 220k

    Total unlocked Equity 500k

    Thank you
     
    homeland, 7th Mar, 2021
    #1