If your home is worth more than when you bought it, the gap between its value and your loan is equity — and up to 80% of the property value (minus your current loan) is typically usable without LMI. A cash-out refinance releases that equity as funds: for renovations that add further value, a deposit on an investment property, a business opportunity, or consolidating expensive debt. Structure matters enormously here — releasing equity for investment should sit in a separate loan split so the interest stays cleanly deductible, something banks frequently get wrong. We handle the valuation strategy, lender cash-out policies, and the split structure, alongside your accountant's advice.
Common Challenges
What's Included
Our Process
Why Choose Wiseman Financial?
Frequently asked questions
How much equity can I access?
Usable equity is typically 80% of your property's value minus your current loan. Example: home worth $1,000,000 with a $550,000 loan → 80% is $800,000 → usable equity ≈ $250,000. Above 80% is possible with LMI but rarely optimal.
What can I use released equity for?
Renovations, an investment property deposit, shares, a business, education, a vehicle, or debt consolidation. Lenders ask the purpose and may want light evidence for large amounts — we prepare this upfront.
Is the interest tax deductible?
Only borrowing used for income-producing purposes (like an investment property) is generally deductible — which is why we split investment borrowing into its own loan account rather than mixing it with your home loan. Confirm specifics with your accountant.
Will accessing equity increase my repayments?
Yes — you're borrowing more. Parking released funds in an offset until used means the extra borrowing costs nothing in the meantime. We model the repayment impact before you commit.
What if the bank's valuation is low?
Valuations vary surprisingly between lenders. As brokers we can order valuations with several lenders and proceed with the most favourable — often the difference between a plan working and not.
Ready for Cash-Out Refinancing & Equity Release?
Free consultation, no broker fees.