If you have owned your property for some time and/or have substantial equity in that home, you may be able to purchase a second property using the equity from your current home to access a deposit to purchase again.
Your equity in your home is the difference between what you owe on your home loan and the current market value of your property (as per a valuation from a registered valuer). Quite simply, it is the amount of money you would have left over if you sell your home, without the associated real estate selling fees etc.
Your initial equity in your home comes from your deposit and any payments that you have made but as the value of your home rises with time or improvements, you may gain substantial equity from the higher value. Many Australians benefited from a large jump in equity in the buoyant property market over the past two years. It’s worth noting that equity does fluctuate, dependent on the current property market and whether values are up or down.
You may be able to leverage this equityas a deposit for a second home, as an investment property or to purchase a new owner occupier property and rent out your current home. Always check with your accountant or financial adviser as to whether this is right for you before making a final decision.
Your expert Mortgage broker at Brisbane Home Loans can walk you through how to calculate your available equity, how much of that is accessible (your lender will require you to maintain a minimum percentage) and how much you could borrow to purchase again.
Call Daniel or Jordan for a chat about how equity home loans work. They will look at your equity, income, living expenses and how much is still owing on your home loan. We will also carry out a home loan health check, then walk you through the different loan options available to you. Your broker will explain all costs involved, along with the risks.
Using your equity to assist in the purchase of a second home or other appreciating asset can be a clever strategy, but it also carries risk and should not be done lightly or without advice from your accountant or financial adviser.
Give us a call on 1300-730-997 now for a chat about exactly how it works and what options are open to you.
Resource Link : https://www.atoallinks.com/2022/how-do-i-buy-a-second-property-with-no-deposit/
If you live in and around the Brisbane territory and are searching for Mortgage Broker Brisbane to take out a home loan, then you should converse with one of our Omac Mortgages experts.
Omac Mortgages has a network of mortgage brokers located right across the Brisbane region.
Other regions we cover are Mortgage Broker in Los Angeles, Concord, Palo Alto, California, the bay area, and San Diego.
We remove the problems out of the loan application process and ensure you get the best solution for your requirements.
For further supplementary information, visit our website: https://omac-mortgages.com/
