Equity is calculated by working out the difference between the value of your home and how much you owe on it.
As you pay off your home loan, and the value of your property increases over time, and your equity balance grows.
If you home is worth $600,000
And you owe the bank $150,000
You could have up to $450,000 in equity.
Why is it important to how much equity you have?
You can use the equity of your home to buy an investment property to help set you up for retirement. Dependant on your situation, you can also use the equity in your home to make purchases such as a new car or much needed holiday.
Unlocking the equity in your home can open the doors to greater financial opportunity.
To find out if you can use your home’s equity to buy an investment, contact our friendly team today..