Hi All We purchased a home almost two years ago, our fixed rate term ends in August. Fortunately for us, our suburb has exploded in value over the past 6 months, thanks in part to a huge water-front development being almost completed around the corner. Our suburb has had 3 homes (albeit, very well renovated) in the past 2 weeks break the suburb price records. Conservatively, we would think our home would be valued at 700k. By August, our loan balance will be 475k with 28 years remaining. We are hoping to withdraw about 70k equity and re-finance (<80% LVR). Our current fixed rate is 3.19; however, this is clearly quite high for current market. Our income is slightly better than when we initially got the loan. I am not so sure of the process or whether this is common to do this? Cheers
You can't withdraw equity, but you could potentially borrow more money secured against the property. You will have to explain what the money will be used for, meet the cash out criteria and should consider the tax implications now and down the track.
Quite common, some lenders are better at the equity release than others. Suggest engaging a broker to review your options and find the most suitable product for you