October 13, 2014
Part two of our accessing your equity blog series shows you how Daniel Meade, your mobile Mortgage Choice Broker from Brisbane can help you unlock the equity in your home.
To read part one of this series please click here.
Firstly, the process of accessing equity is a little more complex than understanding and working out your equity.
Your mortgage broker, Daniel Meade, can help you:
1. Calculate the available equity based on an estimation of the current market value of your home. This is determined from comparable sales in your area, or from a real estate agent’s valuation, less the balance of your current loans secured against that property.
2. Determine your accessible equity taking into account your needs, plans and most importantly, your servicing capability. This means they will work out if your ability to cover any additional repayments (essential when buying an investment property) will have an impact on the amount of equity you can access. Perhaps the repayments for borrowing the full $160K, as in the first example, is above what you can afford to repay based on your income and expenses. You may need to realistically look at only unlocking part of that equity to ensure you can afford the repayments comfortably.
3. Research your loan options to help you assess if your current home loan product is still working for you and to assess which new investment loan product will best suit your needs. Your mortgage broker will include looking at interest rates, fees and other features in this analysis.
4. Determine the costs involved with accessing equity including all various fees and costs.
5. Do the hard work for you when it comes to the application and settlement. Meaning once you have decided ( with the help of your Mortgage Choice broker) which product and lender to use, and if you will be staying with your current lender or switching or using a new lender, they will take care of all the paperwork and lender communication on your behalf.
The best part about this entire process is that it comes at no cost to you.
Our expert home loan advice is no obligation, just a free chat with Daniel Meade, your local Mortgage Choice mobile broker in Brisbane.
looking for detailed explanations from other sources - Your Investment Property Mag explains:
If you haven’t quite got your head around the whole investment property idea and want to read more, Daniel Meade, your mobile mortgage broker in Brisbane recommends reading this article, Beginners guide to accessing equity from property from Your Investment Property Mag.
This article gives you the nitty gritty on a range of topics, all with easy to read tables showing financial examples, including:
- calculating equity,
- capital growth and equity,
- the negative growth effect,
- usable equity,
- line of credit vs lump sums,
- cross colateralisation,
- doing your sums,
- investment costs,
- and renovating.
Want to watch a video on unlocking equity?
Mortgage Choice has helped us out by recording this explanatory video relating to how you can use equity to buy property. Click below to watch:
If you would like learn more about this topic, or about your home loan or financial advice options, contact Daniel Meade from Mortgage Choice today on:
Phone 07 3833 9666,
Or simply click on the contact us tab on this page.
If this information has been helpful to you or might be relevant to someone you know, please share it.
Daniel is looking forward to helping you unlock your equity very soon.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.