HOW CAN I USE THE EQUITY IN MY PROPERTY?

Equity in a property can be described as the difference between the value of your property and what you owe on your property.

For example - If you own a property worth $1,000,000 and you currently owe $500,000 against this property you have $500,000 in total equity.

Useable equity is different to total equity.

Useable equity is the amount of equity that you are able to access with any given lender.

This will vary from lender to lender but in most cases it is the difference between the amount you owe against your property and 80% of your property value.

For example - If you own a property worth $1,000,000 and you currently owe $500,000 against this property you have $300,000 available in useable equity.

To break it down further.

80% of $1,000,000 = $800,000

Difference between this and what is owed on the property = $300,000

If you are able to show that your meet specific lender serviceability requirements as well as providing an acceptable reason for wanting to access the useable equity in your property. You can access this to fund certain endeavors.

• As a deposit to purchase an investment property

• Purchasing investments including shares and stocks

• Purchasing a vehicle

• Debt Consolidation

• Cosmetic Renovations

• Building a Shed