How much equity can you unlock?
Your home has likely grown in value. An equity term loan lets you borrow against it at home-loan rates. Tell us your unit and outstanding loan to see the cash you could draw.
Banks lend up to 75% of the current valuation. CPF used, with accrued interest, is netted off because it must be returned to your CPF on a future sale.
What an equity term loan actually is
As you pay down your loan and prices rise, a gap opens between what your home is worth and what you still owe. An equity term loan turns part of that gap into cash you can use, without selling.
You keep your home
It is a loan against your property, not a sale. You keep living in it and keep any future price gains.
At home-loan rates
Because it is secured on property, the rate is a fraction of a personal loan or credit line.
A lump sum or a line
Draw the cash as a term loan to reinvest, renovate, or consolidate higher-interest debt.
Capped at 75% LTV
Total borrowing cannot exceed 75% of the valuation, so the existing loan and CPF used are netted off.
Turn your equity into income
Borrow at home-loan rates and invest for yield. When the return beats the interest, the difference is extra income each month. Here’s the spread across three packages.
2-year fixed
2.50%Rate locked for 2 years
3-year fixed
2.65%Longer certainty, slightly higher
Floating (SORA)
2.30%Lowest today, moves with SORA
Illustrative only. Investment returns are not guaranteed and capital is at risk. If returns fall below the interest rate, you lose money on the spread. Rates shown are indicative; floating rates move with SORA.
The value behind your equity is one you can trust
The valuation your headroom is sized on is produced by Amicus, a Singapore data company operating since 1985, using the same automated valuation approach banks rely on.
An independent valuation produced by Amicus, a Singapore data company operating since 1985, not a number we set ourselves.
Powered by an Automated Valuation Machine (AVM), the same class of model the banks rely on to value property.
Factors in location, floor level, built-in area and recent transactions for the unit and its neighbours.
No personal details needed to see your value or how much equity you could unlock.
The estimate is indicative. The actual amount depends on the bank’s own valuation, your age and remaining tenure, and TDSR. Equity term loans apply to private property only.
Frequently asked questions
How an equity term loan works, how much you can unlock, and what to do with it.
What is an equity term loan?
It is a loan secured against the equity you have built in your property. As you pay down your mortgage and prices rise, a gap opens between what your home is worth and what you still owe. An equity term loan turns part of that gap into cash, at home-loan rates, without you having to sell.
How much cash can I unlock?
Banks lend up to 75% of the current valuation. From that ceiling we subtract your outstanding home loan and any CPF used (with accrued interest), because CPF must be refunded on a future sale. Whatever remains is the cash you can withdraw.
Why is CPF subtracted from the amount?
CPF savings used towards the property, plus the accrued interest, must be returned to your CPF account when the property is sold. Because that money is already spoken for, it counts against the 75% ceiling and reduces the cash you can take out today.
Can HDB owners take an equity term loan?
No. Equity term loans apply to private property only. HDB flats cannot be used to cash out equity this way.
Is it a good idea to invest the cash I unlock?
It can be, but it carries risk. You borrow at the loan rate and earn whatever your investment returns. When the return beats the interest, the difference is extra income; if the return falls below the interest rate, you lose money on the spread. Capital is not guaranteed, so treat the income projection as illustrative.
What affects the actual amount and rate I get?
The bank’s own valuation, your age and the remaining loan tenure, and your Total Debt Servicing Ratio (TDSR) all affect how much you can borrow and at what rate. The figures here are indicative; a Cashew advisor can confirm your headroom across all major Singapore banks.
Ready to unlock your equity?
Speak to a Cashew advisor about an equity term loan. We’ll confirm your headroom and find the package with the lowest rate across all major Singapore banks.
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