Refinancing Home Mortgage

Hey guys,

I need some advice on refinancing my current ANZ home loan. The purchased my 3 bedroom split level Grollo for $160,000 in 2000. At the time it was valued at $180,000 and I managed to purchase it below market value. Five years later and a conservative estimate of the current market value would be $240,000.

Over the last 5 years I have payed down the loan to $140,000. I am looking at refinancing my home loan with another lender up to 80% current market value and increasing the loan term out to 30 years. (Original was for 25 years) Rudimentary calculations have the loan sitting aproximately at the same fortnightly amount as it was for the original 25 year loan.

This gives us a cash in hand amount of approx $52,000 which we intend to break down as follows:-

$15,000 for Kitchen rennovation
$ 5,000 for Bathroom rennovation

With these improvements our property value should be in the range of $300,000 (Other similar properties have sold up to $340,000 in our suburb)

This then leaves us with $32,000 for investing into property here in Darwin.

Two questions:-

1) Is a main stream lender going to be likely to approve this refinancing arrangement?

2) Does this seem like a good idea?

BorgInvestor