Access Your Home Equity
From the day you purchase property, you start to accumulate home equity - meaning the investment you made starts to become valuable to you in real estate terms.
The equity in your home is the distinction between the property value and what you owe on your mortgage.
In the future, if you wish to renovate your property or make an investment purchase, you may be able to access your equity to finance your project, via a line of credit loan.
As it can be difficult to save for new ventures while paying off home loans, mortgage refinancing is utilised as a common solution to securing funds.
The amount you can borrow is subject to the amount of equity you have built up in your property and other criteria.
As a guideline, you are limited to borrowing a maximum of 90 per cent of the value of the real estate.
It may benefit you to speak to a mortgage broker about various refinancing strategies - often, different property objectives require targeted loan products to suit your needs.
With in-depth knowledge of the market and lending options, mortgage brokers can help you develop an educated refinance strategy.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.