Equity is the difference between what your home is worth and how much you owe on it. The more you pay off your home loan, the more of the property you own or the more "equity" in the property you build up. It is possible to borrow against this equity for any number of reasons including for further investment, to purchase a second property, to purchase shares, to provide funds to assist with home renovations, to purchase a vehicle, go on a holiday and many other purposes.
The advantage of borrowing against this equity rather than taking out a personal, investment or business loan is that the interest rate will usually be lower, being at home loan rates.
It is also worth remembering that it's not just reducing the amount you owe on your home that increases your equity - if the value of your home has risen since you bought it, your equity is likely to have increased.
By taking advantage of the equity you have built up in your home you may be able to access a whole range of opportunities sooner or improve your lifestyle now.
Talk to one of our helpful home loan specialists today to discover how we can help you.
