A word from your Mortgage Broker
How to use the equity in your home
Equity is the difference between the market value of your property and the amount you still owe on your home loan. You can often access this equity and use it to improve your lifestyle.
If you’ve paid down your loan or your home has increased in value, you may be able to use your equity for:
- Maintenance or renovations on your home
- As a deposit for your next home or an investment property
- Investing in other wealth-building opportunities such as shares or managed funds
- Improving your lifestyle such as a new car or family holiday.
How it works
To find out how much equity you have in your home, you will need to get a property valuation.
Whether you can borrow additional funds to access the equity in your home will depend on a number of factors, such as income, living expenses and how much you owe.
How to build equity in your home
There are a number of ways you can build equity in your home, so you can improve your financial position and your lifestyle:
- Increase the value of your property by renovating your home
- Reduce your loan balance by making more regular or larger repayments
- Opening an interest offset account, so your savings are offset against your loan balance, to reduce the interest you pay on your loan.
If you are looking to access equity in your home and you would like further information, please contact Joel and his team.
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