Refinance / loan top up can be used for property full paid off, or still with loan. If the property still have existing loan, then top up with the same bank lo. If ur property is free of encumbrances, then you can select the one with the better rate.

On refinancing, i dun think you can refinance 100%. Most probably is 9
80 or 90%.. subject to banks guideline.

If the valuer gave a rm 400k value, say 80%, you can get 320k only.
On top of that, a loan top up have a difference kind of DSR calculation. Albeit the loan can be stretch up to 30 years or so, the DSR calculation is based on 10 years.

So you need to have very strong income.. if not, will be hard.

For more detail info, probably listen directly from a mortgage banker that is working in a bank, not outsourced one becuz outsource banker dont do refinancing / loan top up.

Valuation is subject to a few factors such as the renovation and material used.

At the same time looking at the sales price around the location or the same condo.
By cashing out the extra money, it depends on your purpose of the cash out, is it for renovation, investment, debt consolidation or other purposes?

Using that money and paying the interest rate of the housing loan, are you able to generate a higher return elsewhere with the bank's money although you're paying a higher installment.

If you don't refinance the property then you're sitting on the cash in paper value of your property until you sell it off to monetize it. If you intend to keep the property and use the money for other opportunities, then refinancing is a smart move.

This is subject to your tier income, some banks take 10 years, AIA take up to 35 years calculation.

And no, they won't look into the future of the property or rental, bank do not want to hold your asset if you default, they want their interest and money back as soon as possible to give it to the next potential borrower who can pay their interest.

When you sell the property, the new bank will pay off the full amount outstanding with your current bank.

As mentioned, different FI will have different calculation on the DSR, the assumption of 1/3 is not usable.