How it is estimated
The calculation estimates the room between the 80% limit and what is already secured against the property.
Why this is not net cash
That room is not money in your pocket. Take out the penalty, the appraisal, legal fees, and any debts repaid at funding: the net is often much lower.
What the lender has not said yet
It does not confirm the value a lender will accept for your property, the amount it will authorize, or that the project qualifies.
A worked example
A property valued at $500,000, a mortgage balance of $300,000, and no other secured debt. The maximum secured amount is $400,000 (80% of value), leaving $100,000 before costs. With $1,500 for the notary, $400 for the appraisal, and $300 for the discharge (illustrative amounts), $97,800 remains. If the old loan carries a penalty, subtract that too: the net amount in your account is smaller than the room shown.
Common questions
Why is the limit 80% of value? Lenders do not finance more than 80% of a property’s value for a standard refinancing: the remaining equity is the safety margin. Does a secured line of credit count? Yes: any debt secured on the property is subtracted from the available room, which the secured-debt field lets you enter.
Next step
Send me the approximate value, your balance, and the amount you want: I’ll calculate the net cash after penalty and fees.