Welcome to a smarter financial path!

At The Happy Finance Company, we're here to show you that your home can do more than provide shelter—it can also be a key to unlocking financial opportunities. Cash out refinancing offers a pragmatic solution to access the value tied up in your home. Let's explore how cash out refinancing works and how it can be a smart move for your financial strategy.

What is cash out refinancing?

Think of your home as not just a living space but also a financial asset. Cash out refinancing allows homeowners to refinance their existing mortgage, tapping into the equity of their home to free up cash. This cash can then be used for various purposes, directed into an offset account, bank account, or a line of credit. It's a flexible solution, but it's important to be mindful that it extends the timeline for paying off your mortgage.

Understanding home equity: your financial asset

Home equity represents the part of your home's value that you own outright. It's the difference between the current market value of your property and the remaining mortgage balance. To fully understand your home's equity, an up-to-date property valuation might be necessary, which can be arranged independently or through your lender during the refinancing process.

Imagine your home is valued at $800,000 and your remaining mortgage balance is $200,000. Your equity stands at $600,000, which is 75% of your home's value. This equity can grow through increases in property value, strategic home improvements, or favorable changes in the market.

The cash out refinancing journey with The Happy Finance Company

Our team is here to support you every step of the way through the cash out refinancing process. Here's a quick overview of how we'll manage this with you:

1 . Discover your equity: We'll with a property report for an initial equity estimate. A formal calculation will come later.

2 . Define your goals: Clarify why you need the cash. Lenders will want to know.

3 . We'll explore your options with you by looking into different home loans to find one that suits your needs.

4 . Begin your application: We'll guide you every step of the way in applying for your new mortgage. This step often includes a real-life property valuation.

5 . Manage the switch: If you're moving to a new lender, they'll manage the mortgage discharge process, and we'll be here to help make sure it goes smoothly.

Prepare for settlement: Get ready for the final steps.

How much can you access?

The amount available for access varies, typically up to 80% of your property's value. However, if your Loan to Value Ratio (LVR) is higher, there may be other options like Lenders Mortgage Insurance (LMI), though certain restrictions apply.

Solid reasons for cash out refinancing

The amount available for access varies, typically up to 80% of your property's value. However, if your Loan to Value Ratio (LVR) is higher, there may be other options like Lenders Mortgage Insurance (LMI), though certain restrictions apply.

Consider the implications

While cash out refinancing offers substantial benefits, it's essential to consider the potential downsides, such as increased debt, the temptation of financial missteps, or extra costs associated with fixed interest loans. It's crucial to weigh these factors and seek advice from our team or a financial advisor.

The timeline to financial flexibility

Typically, the process of cash out refinancing spans 2-4 weeks, influenced by factors like lender processing times and individual circumstances.

Exploring other options

Beyond cash out refinancing, other avenues, such as refinancing with a cashback deal from a lender, can provide financial flexibility. We are ready to guide you toward the best choice for your situation.

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