You may have equity in the current property you own that could potentially be used to take out another home loan.
Equity is the difference between what your home is worth and how much you owe on it.
Remember, your home could be worth more now than when you bought it. To find out if it is you can have an appraisal done on your home to find out its current value. If you use equity in your current house to buy a new property then the bank will most likely have to conduct a valuation on your house.
John’s home is worth $415,000. Because John owes $215,000 on his loan for this house it means he has $200,000 worth of equity. John could use this equity as part of a deposit on an investment property by talking to one of our home lending specialists.
To find out whether using equity from your existing property to buy another is right for you talk to one of our home lending specialists today – visit your local branch or phone 13 14 22.
To approved applicants only. Fees, charges and conditions apply.
* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
The information provided is intended as general information only. Blogs have been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. You should consider obtaining personal investment, taxation and/or legal advice before making any decision. Please consider the Guide to Heritage Deposit Products and Guide to Heritage Credit Card Products (available in-branch, or at www.heritage.com.au) before you decide whether a product is right for you. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice.