Home Equity Loans in Townsville

Equity Loans

If you are planning to buy your next investment property, it’s possible to use the equity in your home or other investment properties to help you do so. You can gain equity by your property increasing in value, whether that is through capital growth or renovation, or paying off your home loan.

If you are planning on using equity to buy property, you can potentially access 95% of your total equity as security. You may have equity in your properties, but that does not necessarily mean you can borrow against it. Your lender will take into account your income and number of dependents, other debts you have, as well as a range of other factors. This allows them to calculate the amount of equity you can access.

Find out more on how we can assist you with home equity loans. Contact the team at Best Home Loans servicing clients Australia wide.

There are various benefits of taking out a home equity loan to purchase an investment property or finance renovations. These include:

You can gain access to a large amount of funds between 4 - 6 weeks
Home equity loans often have lower interest rates than personal loans & credit cards
There are a wide variety of lenders to choose from
Home equity loans are secure (your home will be used as collateral)
You can start building a property portfolio
Some lenders offer longer term loans

What is negative equity?

Negative equity in home loans refers to a situation where the outstanding balance on a homeowner's mortgage loan is greater than the actual market value of their property. In other words, the borrower owes more to the lender than what their home is worth.
How can I avoid negative equity?
There are a few things you can do to reduce the chances of negative equity:
1. Shop around for a mortgage that fits your budget. Don't overstretch yourself by taking out a loan that's bigger than you can afford.
2. Make a larger deposit. The more equity you have in your home, the less likely you are to end up in negative equity if prices drop.
3. Keep an eye on the housing market. If you're worried about prices falling, consider waiting to buy until you're more confident that the market has stabilised.
Can I take out multiple home equity loans?

You can take out multiple home equity loans, but there are some things to keep in mind. First, you'll need to have enough equity built up in your home to qualify for more than one loan. Second, each loan will likely have its own interest rate and terms, so you'll need to compare them to see which option makes the most sense for you. Lastly, keep in mind that taking out multiple home equity loans will increase your monthly payments and the amount of interest you'll pay over the life of the loans.