In short, Yes! You can refinance your home loan to consolidate debt and obtain some extra cash. Not all lenders will allow this to occur, so it is important you seek the right advice from us to ensure you qualify with the appropriate lender.
Some lenders will let you consolidate debt and cash out up to 80% of the value of your property. Some lenders will go higher than 80% however you will most likely need to provide evidence as to the purpose of what the cash will be used for, ie quotes for renovations etc.
In this case the client needed to re-finance in order to purchase a block of land to eventually build an owner occupied home. Fortunately the clients had an investment property with a healthy amount of equity, in which they were able to use as security to:
- Refinance their current Investment Home Loan to a Lower Rate
- Consolidate a Car Loan to reduce monthly repayments
- Consolidate Credit Card to reduce Credit Card Debt
- Release a small amount of cash for extra expenses
- Reduced the overall loan to value ratio of the new property (new block of land) to avoid paying Lenders Mortgage Insurance.
The overall end result has now put them in a position to purchase the land and reduced their monthly repayments in order to save money to spend on the build and pay down their loans.
If the above scenario looks similar to your situation and you and would like some help please do not hesitate to contact us on 8823 5400 or complete the form below and we’ll get in touch with you.
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