Hi Which banks at the moment are willing to cash out more than 100k+? I am thinking of cashing out equity to invest in shares / property and even renovation Ta!
100k+ cash out for investment property, renovation etc should not be an issue with lot of lenders. Bigger picture is who will fit your long term strategy and what goals you wish to achieve post is this cash out. For eg. if you are planning to buy next property then who would be able to service both and cash out also.
Depends ...........if you have some share trading experience and can prove it, but the shares/reno question is a quandry If reno, needs to be non structural and may end up having to provide quotes. If shares and you can prove history, most lenders are fine within reason say sub 300 CBA will do 300 without too much whining NAB are okish to 300 k or possibly more depending on the strength of the deal ANZ may want a stat dec and confirmation you are going to " double gear" the cash out - ie margin lend Bankwest are good to 800 Resimac dont really have a limit, nor do Mac bank, but they do want a lowish DTI and a 70 LVR ideally. Most lenders are just trying to manage their FTRA compliance risk. ta rolf
Pepper...not a bank...but they are very generous.....forget about the majors because they will want a good reason. A lot of brokers have vested interests..to push certain banks.
Most banks will pretty much decline your application if it's for share purchases, but renovations is easy as long as it's non structural Just about all your major lenders allow it, have even gotten $500k cash out with a big4, just need to propose it right.
With most lenders you're going to have to make some sort of case for that type of cash, but there is usually a way through it. It's often a matter of matching the lender to the circumstances. Rolf has outlined some good parameters. I'm not sure where Tony's comment regarding share purposes comes from, I had an application for cash out for shares approved last night. Certainly most brokers have favoured lenders because of a general match to the profile of clients they attract and general famililarity. That's human nature. To suggest a vested interest is simply wrong. No less than five independant renumeration reviews around 2016-2018 and the subsiquent restrictions pretty much ensures brokers don't benefit from one lender or another outside of the standard commission payments. There's still plenty of possibility for vested interests for non brokers to recommend specific lenders though.
I think all lenders would want a reason of some sort to obtain the cash out. I really doubt Pepper will give you the cash out just because you say "you want it".
Yes....but some are more difficult... i.e. Big 4. Hearing more changes on the way...they are now looking at asset quality ...and interestingly they are worried about people buying houses in good areas which would have been worth $3m...now selling for $5m in Sydney. They are about to take the sails from this...valuers are also winding back valuations on the above $3m stock. Recent...example was brothers who thought their place in the upper North Shore was worth $6m. Vals came back at only $4.2m. Watch this space....CBA is leading the pack on being more conservative.....more to come. Only mad men will stick their necks out now....
Peter not directed at brokers like you...its some I know...who are pushing certain banks only. I am not a vested interest...I do my own thing....I find that a lot will not recommend certain institution because it is too much work! I know some brokers on here and they have way too many vested interests....piped pipers....
Not really, have done cash out with majors and non majors, all about the same level of information needed. Also, the banks don't do the valuations and it's rather allocated to an approved valuation firm approved by banks thats submitted through a 3rd party. Lending will get tighter, that's a given.
Thanks Rofl any experience with ING and St. George regarding cash out? I do have some shares experience. I prefer these two as they have slightly higher cashback
I see #sashenomics is making a comeback. Cash out is certainly stricter than it used to be . But this is not new . The post APRA era has been with us since 2016. Cash out is still readily available at multiple lenders - including several of the bigger names. But yes, some places ask fewer questions than others. Valuers are independent operators. Lenders provide standing orders on what they want commented on within a valuation report, but they dont instruct HTW or WBP or Opteon for example , to value less than they value for a competitor lender ... CBA ( or any other lender ) can set lending policies at its discretion , but they aren’t in a position to create two tiered valuation processes . Brokers are pretty much paid the same everywhere. I agree far too many brokers are order takers , but I don’t agree that it’s prevalent within the more recognised brokers on this forum. This is a more astute group of brokers than the average broker you find out there , who tend to see more owner occupier business than investment business and typically don’t have backbooks full of multi property investors. Pipers tend to be pied rather than piped you have multiple properties , so you’ve had to apply for loans more than the average bear , and it’s led you to believe you know more about lending than you do.
If you have equity and split banking, this is what I did by accident not on purpose - had enough equity in my properties at cba - refinanced $600k from nab to cba - did not take the security from nab - cba paid loan monies at settlement to directly repay my nab loans - next day redrawed on my nab loans and put funds back into offset This only worked because I didn’t take the security across…
STG and WBC can both be great and iffy. Largest cash out was 1800 k at 90 % no lmi a couple of years back, last week we had a fight over 72 k at 80 % ING arent much on our radar, used to have a great commercial product, their lending suite and credit policy isnt often a fit for either our portfolio builders or debt recyclers. Used to be price leaders, but now we have "Lexus " products like AMP and Mac at similar pricing to ING. ta rolf
