This follows the move made by ING 1 month ago where they banned cash out/ equity on investment properties.
Citibank has made a move to limit the amount of cash out/ equity you can take out.
For loans under $500,000 ( at 80% LVR) - Cash out/equity is limited to maximum 5% of the refinance loan value.
For loans over $500,000 ( at 80% LVR) - No restrictions ( YET)
Current Property value: $600,000
Current loan: $350,000
Normally we can take out 80% of the property value: So $600,000 x 80% = $480,000 loan
Minus your current loan ( $480,000- $350,000) = $130,000 equity.
Under this new 5% maximum, the equity will only be $17,500.
Our advice. Take out as MUCH equity as you can NOW!
Contact a Shape Home lons advisor today (No charge).
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