Thursday, 16th July 2015
In simple terms, equity is the term to describe when your property is worth more than what you owe.
Your home loan balance is sitting on $300,000
A recent valuation puts your home at being worth $650,000
Your equity is $350,000.
At least 80% of that equity can be used as security to purchase another property.
You will of course need to confirm your borrowing capacity with your finance broker or bank prior to making any commitments.
Until next time,
From the desk of Christine.