Cash-Out Equity Term Loan Calculator

How the maximum equity loan is calculated

Banks cap an equity term loan at up to 75% of your property's current valuation, then subtract whatever you still owe on your existing home loan and any CPF (with accrued interest) already used on the property. What's left is the cash you can potentially unlock, subject to your income and TDSR headroom.

Max cash-out = (75% × current valuation) − outstanding loan − CPF used (with accrued interest)

Worked example

Say your condo is now valued at $1,500,000, you have $600,000 left on your existing loan, and you've used $200,000 of CPF (including accrued interest) on the property so far. The 75% LTV cap gives $1,125,000; subtracting the $600,000 loan and $200,000 CPF leaves a maximum equity loan of $325,000 — cash you could unlock without selling, subject to the bank's assessment of your income and existing debt.

What changes the result

• Current valuation — a fresh bank valuation (not your original purchase price) sets the 75% ceiling; property appreciation directly increases how much you can unlock.
• Outstanding loan balance — every dollar you've paid down on the existing loan increases the equity available to cash out.
• CPF used with accrued interest — this amount must be set aside or refunded to your CPF account before you receive cash, so higher CPF usage over the years reduces your net payout.
• TDSR headroom — even if the LTV math allows a large payout, your income and existing debts may cap the instalment the bank is willing to approve.

Common mistakes to avoid

• Assuming HDB flats qualify — they don't; only private property and post-MOP ECs are eligible.
• Forgetting that CPF used (plus the interest it would have earned) comes off the top before you see any cash.
• Not checking how the new equity loan instalment affects TDSR headroom for other financing needs.
• Using an outdated valuation instead of getting a fresh bank valuation, which can under- or overstate what's available.

Check how the new instalment fits into your overall debt ratio with the TDSR calculator, or see if refinancing your existing loan alongside the cash-out makes sense using the refinancing calculator. For a full amortization view of the combined loan, try the amortization schedule calculator.