getting equity out
- Thread starter tj22
- Start date
Do they need proof of the purpose?
At 80% the brokers/bankers notes will generally suffice. For instance- if you were wanting the equity for a future IP deposit then that's what you'd tell them.
If you were borrowing above 80% then they may want to see proof such as a contract of sale.
Cheers
Jamie
Depends on the lender and specifics of the deal. Plenty of lenders are very easy to deal with at 80%. Others ask more questions.
If credit scoring lender and high risk assessment comes through, then evidence may be required.
Are you referring to a specific bank? ANZ are very good in this space at 80+ (or were last month, i haven't submitted a deal like this since changes have been happening).
Cheers,
Redom
it would be through suncorp bank are they ok to deal with?
Suncorp are one of the worst for accessing equity in my experience. The only good thing I can say about them is they have cheap rates and a reasonable offset account. Equity release, cash out policy, serviceability and general service are all terrible.
They're also on the regulators hit lists right now, although I can't imagine how they could be any worse to deal with for investors.
ok cool i'll most likely go with cba then, random question say u buy a house for 200k a house next door sold a week ago for 245k very similar properties land/bed size. how easy with a 80% variable lend would it be to extract some equity from your house? could u value shop? or would u have to wait at least 3 months before possible?
It'll be difficult without doing at least cosmetic renovations before 3 to 6 months after purchase. Not impossible though.
Interesting, I am in a similar situation where my PPOR has leap in value in a short period of time since I purchased it (200k + in less than 3 months since purchase). I am now wondering if I should get a revaluation or wait for a longer period ? I haven't done any renos yet, maybe a pool later in the year but the value would jump again if I did this (half my luck)
The dragon can be ok with equity releases at 90% - largely depends on how the assessor is feeling on the day
Get an upfront valuation done before committing to an application.
Cheers
Jamie
The dragon can be ok with equity releases at 90% - largely depends on how the assessor is feeling on the day
Get an upfront valuation done before committing to an application.
Cheers
Jamie
Thanks Jamie, I would still want to keep it at 80% just take off the recent gains
90% possibly, subject to serviceability
If you own a single IP and you refinance and as part of that are able to access an extra 50k to still keep you at 80%, where is the best place to put this?
I have just read and heard different replies to this.
1 - Put it into the loan redraw until required then create new split.
2 - Crete a new split as part of the refinance and then have it in an offset for that account. Concern here is it may get spent more easily and also I did read that at some point the bank could close this? Doesn't sound right to me?
3 - Same as above but in redraw, again could the bank close this if it were not touched for say 6 months.
4 - Put it into main offset with personal funds and then advise accountant to proportion a percentage? I had also read this but in my limited wisdom this sounds like loan contamination?
I have just read and heard different replies to this.
1 - Put it into the loan redraw until required then create new split.
2 - Crete a new split as part of the refinance and then have it in an offset for that account. Concern here is it may get spent more easily and also I did read that at some point the bank could close this? Doesn't sound right to me?
3 - Same as above but in redraw, again could the bank close this if it were not touched for say 6 months.
4 - Put it into main offset with personal funds and then advise accountant to proportion a percentage? I had also read this but in my limited wisdom this sounds like loan contamination?
Banks always ask what the increase is for. What reasons are in line with what they want to hear?
