What is a cash-out refinance?
It is a refinance where the new loan is larger than the old loan, giving you access to approved funds after the existing mortgage is paid out.
Common uses
- Home renovations or repairs
- Deposit funds for an investment property
- Education, medical or major family expenses
- Business or personal cash flow needs, where acceptable to the lender
What lenders assess
Lenders look at your property value, loan-to-value ratio, income, expenses, credit conduct and stated purpose for the funds. Some purposes require quotes, contracts or extra documents.
Keep repayments manageable
Accessing equity increases debt. CredQ checks the repayment impact and structure so the cash-out amount supports your plan without creating unnecessary pressure.