Is A Home Equity Loan The Answer?
Every once in awhile, we need a few extra dollars to meet life’s demands - whether it be for renovations on the house, a new car, or to handle unexpected expenses, sometimes the money simply is not there.
Between mortgage payments and daily living costs, it can be difficult to save enough to cover everything that comes our way.
Fortunately, if you own property, you already have an advantage that can help you get through difficult times.
The equity you have built up in your existing home loan can be accessed for these purposes, depending on your lender and personal circumstances. Home equity is the distinction between the property value and what you owe on your mortgage.
Home equity is usually accessed through a line of credit loan - this allows you to withdraw funds up to a set limit at any time. You may be able to draw down the initial equity loan either as a lump sum or in stages.
Generally a line of credit loan is an interest-only loan, and in some cases you may be able to capitalise the interest payments.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.