How do I access the equity in my home?
If you have been paying off a mortgage for several years, chances are you have built up some equity in your home.
Home equity is the distinction between the property value and what you own on your mortgage.
Essentially, years of diligently making repayments on your home loans have put you in a position where you are able to access your equity in times when you don’t have quite enough money to cover what you want to do.
Carrying out renovations for example can be quite costly and your savings may not be enough to cover it.
It is possible to refinance your mortgage and access your equity in the form of a Home Equity Loan.
These are usually offered as a line of credit loan which allows you to withdraw funds up to a set limit at any time.
Just how much you can borrow depends on the amount of equity you have built up in your home - how long you have been paying off your mortgage, and other criteria.
It is important to note that you are likely to be limited to borrowing a maximum of 90 per cent of the value of the property.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.