Cash Out Refinancing and Equity Loan

What do you need to know before applying for cash out?

For most banks across Singapore, if not all, cash-out refinancing is only applicable for private properties. Cash out refinancing or taking up an equity loan is when you would like to use your property as a collateral because you are in need of cash in hand, maybe for personal investments or to start up a small company etc.

The maximum loan tenure is 75 years minus your current age and the minimum loan amount is $100k.

Find out what the maximum cash out you are eligible for by doing the simple calculations below.

*CMV refers to the Current Market Value of property (which is done by the bank that you would like to refinance to).

Cash Out Refinancing
70% of the Current Market Valuation = Figure A
Figure A - CPF contribution of both borrowers = Figure B
Figure B - Outstanding loan amount with current bank = Amount of Cash Out

Equity Loan
An equity loan is basically cash out refinancing for a property that has been fully paid for. The bank you are keen on taking up an equity loan from would do the valuation for you.

70% of the Current Market Valuation = Figure A
Figure A - CPF usage for the property = Equity Cash Out

Documents needed for loan approval

 

Article by MoneySmart.sg - Singapore's leading home loan comparision platform
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