What is a Home Equity Loan?

Many Australians own homes that are now worth far more than they still owe on their Mortgages. With a Home Equity Loan, you can unlock that "equity".

What is Home Equity?
Equity is the difference between what your home is worth today and what you still owe on your Mortgage.

Accessing your Home Equity
If your home is worth $400,000 and you only owe $100,000 on your Mortgage, you have $300,000 in home equity. Previously, the only way you could utilise that equity was by selling your house. Now there is another way.

Unlocking Home Equity
With a Home Equity loan, the Lender lets you borrow against the equity you have built up in your loan. Let's say you need money for your child’s wedding. You don't have any ready cash but you do have equity in your home. A Home Equity Loan is one of a range of possible solutions.

A better interest rate
If you need money, you could use a credit card or take out a personal loan. But you'll probably get a better interest rate with a Home Equity Loan because the loan security - your house - is so good.

Monthly repayments
One thing you need to remember with a Home Equity Loan is that you still need to make monthly repayments.


To access the equity in your home, contact Mortgage Australia today.