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.