Equity is the difference between what your home is worth and what you owe to the bank. For example, if your home is worth $300,000 and you owe $100,000, you have $200,000 in equity.
These days, mortgages are very flexible, and it’s possible to make use of home equity, without the need to sell a much-loved home. Home equity can be used as a source of low cost funding for a new car, home improvements, or a special holiday – at home loan interest rates. These are generally much cheaper than other types of credit.
It’s also possible to use your home equity to grow your wealth. You could put purchase an investment property without having a cash deposit. The rental income from this investment property can be used to pay off the loan.
A Mortgage Choice mortgage broker can help you calculate and access your equity with some simple steps and work through the process with you. Best of all, our expert home loan advice is at no cost to you, so why not have an obligation-free chat with your local Mortgage Choice broker today.