Hi guys,
I am not after financial advice nor am I looking to refinance ( as I don't have an IP yet). Was just pondering if somebody for example brought a house for 300k 80% deposit and had say 225k left owing on it and the person wanted to redraw off the mortgage and say the house is now worth 475k would the banks (in general) lend 80% of the 250k of equity or 80% of the 175k of the equity built up above the deposit? Also is it generally 80% of the equity? I assume it is the latter but just wanted to calrify that in my head.
Thanks in advance.
They would bring the LVR up to 80%, so to 380K. So if you already owed 225K, you could access another 155K.
It is possible to bring the LVR up higher dependent on property and location and serviceability etc.
Thanks mate. Thought that was the case!
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