A way to utilise the equity in your home.
Many Australians own homes that are now worth far more than they still owe on their mortgages. With a home equity loan, you can unlock that “equity”.
What is home equity?
You’ll hear a lot about equity in relation to home loans. Equity is the difference between what your home is worth today and what you still owe on your mortgage.
Utilising your home equity
If your home is worth $400,000 and you only owe $100,000 on your mortgage, you have $300,000 in home equity. Previously, the only way you could utilise that equity was by selling your house. Now there is another way.
Home equity loan – unlocking home equity
With a home equity loan, the lender lets you borrow against the equity you have built up in your loan. Let’s say you need money for your daughter’s wedding. You don’t have any ready cash but you do have equity in your home. A home equity loan is one of a range of possible solutions.
Home equity loan – a better interest rate
If you need money, you could use a credit card or take out a personal loan. But you’ll probably get a better interest rate with a home equity loan because the loan security – your house – is so good.
Monthly repayments
One thing you need to remember with a home equity loan is that you still need to make monthly repayments. To learn more about home equity loans, contact us on Phone 1300 308 970 today.
Source: MFAA https://www.mortgageandfinancehelp.com.au/re-financing/what-home-equity-loan/
Reproduced with the permission of the Mortgage and Finance Association of Australia (MFAA)
Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
