Home Equity

Understanding Home Equity Simply

When you own a home, its value can increase over time, creating what we call “home equity”. Imagine this as a special savings account where money gets added as your home’s value grows and your mortgage shrinks. It’s the difference between what your property is worth in the market and what you still owe on it. So, if your home is worth more than what you owe, congratulations, you’ve got equity!

Leverage Home Equity for Investment Ventures

Utilizing the equity from your home can be a strategic step to not only own a new property but also for other exciting possibilities like renovations or making other big purchases. Instead of using cash, you can lean on your home’s equity to provide a robust stepping stone into further investments.

Your Guide to Accessing Equity with OzBroker

1. Identifying Available Equity: Pinpoint the equity in your home by subtracting the outstanding amount on your mortgage from its present market value. To get an accurate valuation, consider similar property sales in your area or get a professional valuation.
2. Determining Usable Equity: Be savvy about how much of that equity you should use. Factor in your income, expenses, and repayment capabilities. Your accessible equity should align with what you can realistically afford and not just what’s available.
3. Exploring Loan Options: It’s time to dive into your home loan options. Team up with an OzBroker expert who can navigate you through different loan structures, ensuring your choice is beneficial in both short and long-term scenarios. This is also the right moment for an OzBroker professional to perform a quick check on your current loan, comparing aspects like interest rates and other features with alternative options in the market.
4. Calculating the Costs to Access Equity: Your chosen product and desired equity amount could have varying fees and costs. For example, accessing more than 80% of your property’s value might require you to pay Lenders’ Mortgage Insurance (LMI) or other application and government fees if you opt to switch lenders.
5. Loan Application to Settlement: Your dedicated OzBroker expert will guide you from choosing a loan option, traversing through the application process, and ensuring everything goes smoothly up to settlement.

FAQs to Guide Your Equity Journey

• Calculating Home Equity: To figure out your home equity, simply subtract your remaining loan balance from your property’s market value.
• Utilizing Home Equity Effectively: Use home equity to cover investments or other financial needs without affecting your cash flow. It’s vital to remember that while you might have a substantial amount in home equity, lenders may restrict borrowing above 80% of your property’s value without charging LMI.
• Venturing into Second Home Purchase: Buying a second property? Your home equity can stand in as a secure alternative to the traditional cash deposit, unlocking new doors to property ownership.
• Versatile Uses of Equity: Besides aiding in purchasing properties, your equity can be a financial ally for home improvements, snagging that dream car, or even embarking on a once-in-a-lifetime holiday, all potentially at friendlier interest rates than other credit forms.

Ready to Unlock Your Financial Potential with OzBroker?

Dip into the financial reservoir that’s your home equity with OzBroker and pave the path towards your next investment or dream purchase. Our dedicated professionals are here to demystify the process, ensuring you harness the full potential of your equity in a way that’s aligned with your financial landscape and future aspirations.

Embrace a future where your investments work as hard as you do. The key to unlocking your next venture lies in the value of your home. Let OzBroker be your guide, illuminating the pathway to strategic financial growth and robust investment opportunities, all while ensuring a journey that’s transparent, supportive, and tailored to you. Reach out today, and let’s build your future, together.

Contact OzBroker Now and set your course towards financially savvy horizons. Your equity, your potential, our expertise – weaving them into a future that’s robust and promising. Let’s create, explore, and prosper, with every step meticulously planned and every opportunity strategically seized.