Equity is the difference between the market value of your property and the current loan value. This represents the funds you would have if you sold the house. If you have sufficient equity in your home lenders will allow you to access this equity for various purposes.
Different lenders have different rules, but in general you can access equity as cash if you have more than 20% equity in your home. This means you can then utilise this cash for any purpose you require.
You can access equity if you have less than 20% equity, but your loan wil generally be insured by the lender and the insurer will have additional requirements on the amount and use of equity.
Your Liime Mortgage Broker can review your circumstances and advise on the best way to achieve your objectives.
When refinancing the bank will have your property valued by an independent valuer which will be the basis for determining the equity you can access.