Make Your Real Estate Work For You: Accessing Your Properties' Equity
Buying a home is one of the biggest financial obligations most Australians will experience in their lifetime.
The weight of this decision manifests itself in the process of taking out home loans and the resulting mortgage repayments that most people will spend a large part of their life repaying.
However, a house is also an investment - an asset which is weighted in the valuation of a person’s estate.
Owning a house can be expensive, but rather than avoiding renovations or missing out on a few weeks vacation for fear of missing a repayment, you need to learn how to make your asset work for you.
Refinancing your mortgage can allow you to access the equity that has built up in your property.
Equity is the distinction between the value of the property and what you owe on your mortgage. Home equity loans are designed to give you access to your equity via a line of credit.
The amount you can borrow is directly related to your acquired equity as well as other criteria. As a guideline, you are limited to borrowing a maximum of 90 per cent of the property’s value.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.