Yes, the spread is fixed after it's being offered to the borrower.
BR will be reviewed periodically, some banks every 3months.

1) You wont get the cash immediately, still need processing time.

2) Yes, the costs incurred will be legal fee for loan documentation, stamp duty, lock-in period penalty (if applicable)

3) If you refinance to another bank, you submit your application to them, wait for the approval, and sign letter offer, which might already take you two weeks. Then lawyer prepare loan agreement, you sign it, send for execution, maybe another 2-3 weeks. Then request redemption statement from your current bank, advice new bank to pay the outstanding loan amount to your existing bank, then discharge the property from the existing bank and charge to new bank, then only the new bank will release the 50k to you. Estimate 2-3 months from signing of loan agreement or 3-4 months from the day u apply for refinance.

Another faster way will be go to your current bank, tell them you want 50k cash, top up from your existing loan.


Further clarification as i think there's confusion here.

Cash out 50k + outstanding 190K = 240k.
240k is the loan amount. Margin is 48% of the market value (assuming 500k)

7 days i believe u meant the approval of the refinance application, not the entire refinance process.

This post has been edited by Fat3Twister: Mar 6 2015, 12:09 PM