Cash Out Refinance: Access Your Home Equity with Vantage Loans

Your home is more than a place to live – it’s also a potential financial asset. The equity you’ve built in your property can open doors to new investment opportunities, such as purchasing an investment property, funding renovations, or consolidating debts. With cash-out refinancing, you can access this equity to achieve your financial goals while potentially securing a better home loan deal.

What Is Home Equity?

Home equity is the difference between your property’s current market value and the balance of your mortgage. For example, if your home is worth $750,000 and your remaining loan balance is $400,000, you have $350,000 in equity. Most lenders allow you to access up to 80% of your property’s value, meaning you could unlock a significant amount for investment purposes.

Using Equity to Buy an Investment Property

One of the most common strategies for leveraging home equity is to invest in property. With cash-out refinancing, you can use your equity as a deposit on an investment property. This eliminates the need for large upfront cash savings and allows you to expand your property portfolio more efficiently.

Steps to Access Your Home Equity

1. Calculate Your Available Equity

Estimate your property’s market value using comparable sales or a professional valuation, then subtract the remaining balance of your mortgage. This gives you the total equity available.

2. Determine the Accessible Equity

The amount you can access depends on lender policies and your ability to service additional repayments. For example, if you have $400,000 in equity but can only service a loan for $200,000, your accessible equity will be limited to $200,000.

3. Explore Loan Options

Review your refinancing options to find the best loan product for your needs. A mortgage broker can help assess interest rates, fees, and features, ensuring your new loan aligns with your goals.

4. Understand the Costs

Accessing equity may involve fees such as Lender’s Mortgage Insurance (LMI) if borrowing more than 80% of your property’s value, or application and settlement costs if switching lenders.

5. Apply and Settle

Once you’ve chosen a refinancing option, your broker will guide you through the application process, from paperwork to settlement, ensuring everything runs smoothly.

Why Choose Vantage Loans?

At Vantage Loans, we understand that every financial journey is unique. Whether you’re looking to grow your property portfolio, fund renovations, or simply make the most of your home equity, our team is here to guide you. With tailored solutions and access to a wide range of lenders, we’ll help you unlock your property’s potential.

Take the first step today! Call us at 1800 595 500, email us at support@vantagefinancial.com.au, or visit vantagefinancial.com.au to explore your refinancing options.