Buying your own home is probably the biggest investment you’ll ever make. Your home is also likely to be your biggest asset. Why not put this asset to work by releasing some of the equity for making improvements to your home or alternatively using the additional funds to assist in the purchase of a new home or investment property.
What is equity?
The equity in your home is simply the difference between what your property is worth and the amount you owe. You may wish to borrow against your equity to buy another property, refinance your mortgage, renovate or invest in shares or managed funds.
How does home equity work?
An equity home loan gives you a line of credit on your mortgage up to an approved amount. The loan can be taken in full or in stages. This type of loan is particularly useful for those people wanting to renovate their home or invest.
How much you can borrow depends on your situation - your existing borrowings, income and assets are taken into account. And if the equity is for an investment property, your new and current property values will be assessed.
What are the benefits?
Taking an equity home loan enables you to commence your renovations or buy an investment property sooner than you would if you had to save a deposit. It is important to keep in mind that in order to minimise the risks and maximise investment returns that all debts are carefully managed.
I can assist you to make an informed decision and take the stress out of becoming overwhelmed with wide choice of loans and products available on the market.