Equity Term Loan Cash Out

Equity term loan simply means taking cash out of an existing property. Equity cash out is possible for Residential properties as well as commercial and Industrial properties, but not HDB.

Equity term loan, Cash out, Equity loan, they mean the same and is often used interchangeably, though the correct terminology should be Housing Equity Loan or Equity Term loan.

Equity Term Loan becomes possible when the underlying asset (property valuation, usually residential home valuation) rises in value. When the asset price rises, there is "equity". Borrowers can potentially gear up to borrow more by refinancing their current home loan to include a Equity Term Loan, provided they qualify and passed Total Debt Servicing Ratio (TDSR).