Understanding Equity
You didn’t rush into buying your home, so don’t attempt to access your equity without fully understanding the process.
The amount of equity in your home is determined by the difference between the market value of your home, and the amount you still have to repay on your mortgage. Put simply, the more you pay off your home loan, or as the value of your home increases, your equity grows.
Before you do a few quick sums and start planning what to do with your equity, you should consider that by accessing your equity, the total amount you’ll owe on your mortgage will increase, which can mean your repayments rise. What’s more, depending on the type of home loan you have, you may face restrictions which prevent you from taking advantage of your equity or even growing it by making extra repayments.
When thinking of growing or accessing the equity in your home, be sure to speak to a lending expert – you can start an equity conversation online by Making a Home Loan Enquiry today.
You didn’t rush into buying your home, so don’t attempt to access your equity without fully understanding the process.
The amount of equity in your home is determined by the difference between the market value of your home, and the amount you still have to repay on your mortgage. Put simply, the more you pay off your home loan, or as the value of your home increases, your equity grows.
Before you do a few quick sums and start planning what to do with your equity, you should consider that by accessing your equity, the total amount you’ll owe on your mortgage will increase, which can mean your repayments rise. What’s more, depending on the type of home loan you have, you may face restrictions which prevent you from taking advantage of your equity or even growing it by making extra repayments.
When thinking of growing or accessing the equity in your home, be sure to speak to a lending expert – you can start an equity conversation online by Making a Home Loan Enquiry today.