Home Equity Loans
Unlock financing options with your home loan
Home Equity Loans
Unlock financing options with your home loan
Home Equity Loans
Unlock financing options with your home loan
What Is a Home Equity Loan?
What Is a Home Equity Loan?
What Is a Home Equity Loan?
A home equity loan is a type of mortgage that allows you to borrow against the equity you have built up in your home over the years. You can take this loan for various purposes, such as renovations purchasing an investment property, consolidating debt, or funding other large expenses. The amount you are eligible to borrow is the difference between the market value of your property and the amount of equity you currently own in it.
Lower interest rates compared to other types of loans, such as personal loans or credit cards
Pros
Cons
Pros and Cons of Home Equity Loans
Can receive the entire loan amount upfront, making it suitable for large expenses like home renovations, debt consolidation, or purchasing another property
Chances of losing the property used as security in the rare case of a default
May involve fees for appraisal, loan origination, closing, and even ongoing account maintenance
Adds to your total debt, potentially making it harder to manage your financial obligations
Could end up with negative equity if the home value declines, where the outstanding loan balance exceeds the current value of the property
Lower interest rates compared to other types of loans, such as personal loans or credit cards
Pros
Cons
Pros and Cons of Home Equity Loans
Can receive the entire loan amount upfront, making it suitable for large expenses like home renovations, debt consolidation, or purchasing another property
Chances of losing the property used as security in the rare case of a default
May involve fees for appraisal, loan origination, closing, and even ongoing account maintenance
Adds to your total debt, potentially making it harder to manage your financial obligations
Could end up with negative equity if the home value declines, where the outstanding loan balance exceeds the current value of the property
Lower interest rates compared to other types of loans, such as personal loans or credit cards
Pros
Cons
Pros and Cons of Home Equity Loans
Can receive the entire loan amount upfront, making it suitable for large expenses like home renovations, debt consolidation, or purchasing another property
Chances of losing the property used as security in the rare case of a default
May involve fees for appraisal, loan origination, closing, and even ongoing account maintenance
Adds to your total debt, potentially making it harder to manage your financial obligations
Could end up with negative equity if the home value declines, where the outstanding loan balance exceeds the current value of the property
Lower interest rates compared to other types of loans, such as personal loans or credit cards
Pros
Cons
Pros and Cons of Home Equity Loans
Can receive the entire loan amount upfront, making it suitable for large expenses like home renovations, debt consolidation, or purchasing another property
Chances of losing the property used as security in the rare case of a default
May involve fees for appraisal, loan origination, closing, and even ongoing account maintenance
Adds to your total debt, potentially making it harder to manage your financial obligations
Could end up with negative equity if the home value declines, where the outstanding loan balance exceeds the current value of the property
Home Equity Loan Qualifiers
The lender will usually require a property appraisal to determine the current market value of your home and confirm the amount of equity available
Need to be up-to-date with your current mortgage payments and have a history of making payments on time
fAQs
You can purchase a property in Australia with your current home equity by using it as a deposit. For example: If you have a property worth $1,000,000 and have a current home loan balance of $700,000 then you built $300,000 worth of equity in it. Then you can use some of the equity as a deposit for your new property purchase.
How can I purchase a property with my current home equity?
You can purchase a property in Australia with your current home equity by using it as a deposit. For example: If you have a property worth $1,000,000 and have a current home loan balance of $700,000 then you built $300,000 worth of equity in it. Then you can use some of the equity as a deposit for your new property purchase.
How can I purchase a property with my current home equity?
You can purchase a property in Australia with your current home equity by using it as a deposit. For example: If you have a property worth $1,000,000 and have a current home loan balance of $700,000 then you built $300,000 worth of equity in it. Then you can use some of the equity as a deposit for your new property purchase.
How can I purchase a property with my current home equity?
You can purchase a property in Australia with your current home equity by using it as a deposit. For example: If you have a property worth $1,000,000 and have a current home loan balance of $700,000 then you built $300,000 worth of equity in it. Then you can use some of the equity as a deposit for your new property purchase.
How can I purchase a property with my current home equity?
Whether you use equity or cash depends on your financial situation and urgency, but equity is generally a better option to minimise tax and to get better interest rate deals
Which is better to use? Equity or Cash?
Whether you use equity or cash depends on your financial situation and urgency, but equity is generally a better option to minimise tax and to get better interest rate deals
Which is better to use? Equity or Cash?
Whether you use equity or cash depends on your financial situation and urgency, but equity is generally a better option to minimise tax and to get better interest rate deals
Which is better to use? Equity or Cash?
Whether you use equity or cash depends on your financial situation and urgency, but equity is generally a better option to minimise tax and to get better interest rate deals
Which is better to use? Equity or Cash?
Whether you use equity or cash depends on your financial situation and urgency, but equity is generally a better option to minimise tax and to get better interest rate deals
Which is better to use? Equity or Cash?
Looking to tap into your built equity? You’re at the right place! Fill out our consultation form so our broker team at Select Loan & Mortgage can help you get started!
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.