What Is Equity & What Can You Do With It?

Getting a home loan is undoubtedly one of the largest commitments you’ll make. Nonetheless, your home is probably your biggest asset too and the equity in your home loan is both accessible and valuable.

What is equity?

Quite simply equity is the difference between what your house is worth and what you currently owe on it. For instance if your house is worth $400,000 and you still owe $300,000 your equity is $100,000.

How does equity increase?

There are two ways your equity increases:

  1. You pay off your mortgage faster

The faster you pay off your mortgage, the larger the gap between what you owe and what your property is worth becomes

    2.    Your Property value increases    

Your property value can increase through renovating or improving your property or through market value increases. As in your suburb or area’s market value increase.

What can you do with your equity?

There are so many things you can access your equity to achieve, so the opportunities are as endless as your ideas.

Your equity can help you with things like:

  • Investing in property
  • Renovating
  • Purchasing a new car

Want to know more? call us on 0800 38 48 58.



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