Unlock the potential of your existing equity in 3 Simple Steps!
We hear a lot of talk about equity in the property market but what does it actually mean? Do you have any? If so, how can you get your hands on it?
Equity is the difference between the value of your property and what you owe on it. For example, if you bought a property for $300,000 but you owe $100,000 you have $200,000 in equity.
Accessing your equity can provide you with cash to purchase another property, complete a renovation or go on a dream holiday! So, how do you know if you have any equity and how do you access it?
Follow these three simple steps:
Step 1: Value your property: Ask us for a market appraisal and/or ask your bank or mortgage broker for a bank valuation to determine the current value of your property.
Step 2: Calculate the available equity: In general you can access equity by increasing your loan up to 80% of the property value. For example, if your property is now worth $500k, you could increase your loan to $400k. If your current loan is $300k, this means that $100k equity is available.
Step 3: Accessing the available equity: This will involve a new loan application to the bank. As with all home and investment loan applications, the bank will assess your financial position to determine whether you qualify for the loan.
If you are thinking of accessing the equity available in your property, then speak to your bank/mortgage broker and they will be able to assist you with arranging a bank valuation and a new home loan application.
So the question is….what will you do with your equity?
If you would like to explore your options further please contact our office and we can connect you with one of our preferred finance partners.