Equity Take-Out · Refinance Cash-Out
Size a CMHC refinance and extract equity.
See the max new loan on either the LTV or DCR constraint, the premium payable net of your refinance credit, and the cash actually delivered to the borrower after paying off the existing loan, premium and closing costs.
Selected: MLI Select · 100 pts · max 95% LTV · min DCR 1.10x
Max new loan
$22,520,149
Binding constraint: DCR · LTV achieved 90.08%
LTV cap$23,750,000
DCR cap$22,520,149
Net cash to borrower
$8,445,149
Gross new loan (incl. financed premium)$23,350,580
Payoff existing− $14,000,000
Net premium (credit 60%)− $830,431
Closing costs− $75,000
Cash to borrower$8,445,149
Debt service
Current ADS$769,262
New ADS$1,272,528
DCR at new loan1.06x
Existing balance in 5 yrs$13,031,096
Premium credit applied
Gross new premium
$1,040,431
4.62% of new loan
Credit (60%)
− $210,000
of original $350,000
Net premium
$830,431
Financed into new loan
| Within (months) | Credit % |
|---|---|
| ≤ 12 | 75% |
| ≤ 24 | 60% |
| ≤ 36 | 50% |
| ≤ 48 | 40% |
| ≤ 60 | 35% |
| ≤ 72 | 25% |
| ≤ 84 | 20% |
Break-even
Cash-out must exceed $905,431 to recover the refinance costs (premium + closing). Your projected cash-out of $9,350,580 gross of costs leaves $8,445,149 of net equity extracted.
Annual debt-service delta: -$503,267 (positive = lower payments on new loan)