Article published 08 April 2021
For plenty of other home owners, renovations are a chance to get their home into tip top shape, create extra space for a growing family, or complete much-needed updates.
If a renovation is on your radar, it’s worth exploring all the options available to fund the project.
One of those options could be tapping into the equity you have in your home. And, with property prices increasing3, you may have more equity than you realise.
Here's how it works.
First, let’s cut through the jargon. What actually is equity?
Home equity is the difference between your home’s current market value and the balance left owing on your home loan.
Can rising property values impact how much equity I could access?
You bet! The property market is booming, and chances are you could be pleasantly surprised by how much equity you have.
Property prices nationally jumped 2.1%4 in February 2021 – the biggest monthly rise in 17 years according to CoreLogic. That means your home is likely to be worth more now than when you purchased it. In fact, your property could be worth considerably more if you’ve held the same home for several years. That’s great news for your home equity!
Refinancing can unlock the equity in your home
There is a way to access home equity that doesn’t involve selling up.
Refinancing your mortgage can be a way to tap into equity, taking out a new loan for the amount you wish to borrow. Added bonus: You may be able to switch to a lower rate and save.