What is equity?
Equity is the available resource within your home. For example, if your home is valued at $500,000.00 and your mortgage is $200,000.00 the difference between these two is equity.
There are a number of ways to grow equity in your home.
1, Capital growth over time
2, Additional home loan repayments and contributions
3, A combination of the two
How much of this equity can be used towards another purchase?
In order to avoid LMI, equity up to an LVR of 80% can be utilised from your existing property.
Using the figures stated above for example- there would be approximately $200,000.00 in equity available to be placed towards another home and or investment property purchase.
There are a number of factors to also consider when using equity to purchase.
For further information on how we can help you purchase your next property using your equity contact Dora and her team on:
Ph 03 9360 5968 M: 0413 636 645