If your home has grown in value, that growth is usable. A cash-out (or equity release) refinance increases your loan against the higher value and hands you the difference, funding a renovation, an investment deposit or a consolidation without selling anything.
How much equity can you access?
Lenders will usually lend up to 80% of the property’s current value without LMI. The formula: (property value × 80%) − current loan balance = accessible equity. A home worth $1.1m with a $600,000 loan has roughly $280,000 of accessible equity.
What lenders will fund, and what they’ll ask
- Renovations: straightforward; larger structural amounts may need quotes or progress payments.
- Investment property deposits: the classic use. See how equity buys an investment property.
- Shares or super contributions: possible at some lenders; documentation requirements rise.
- “Personal use”: larger unexplained cash-outs (typically $100k+) attract questions; a clear purpose smooths approval.
The costs and cautions
Your repayments rise with the bigger loan, and equity spent is equity gone, releasing cash for consumables (cars, holidays) converts short-lived pleasures into 30-year debt. The strategy shines when released equity buys assets or reduces expensive debt, and sags when it funds lifestyle.
Keep the tax lines clean
If any cash-out will fund investments, structure it as a separate split, not blended into your home loan. Mixed-purpose loans create deduction headaches your accountant will not thank you for. This is a five-minute structural decision at application time that saves years of mess.
Model the repayments on your increased loan before you commit.
Open the repayment calculator →Talk to Nathan about how much equity you can access and the cleanest structure for what you’re funding.