Did you know, you may be able to use the equity in your home to fund your next big purchase? Here’s a quick guide that explains how home equity works and the benefits of using this to get your next loan.
Home equity is the difference between the market value of your property and the amount still owing on your home loan. So if the market value of your home is more than the amount you owe, you may be able to use this to get a loan.
First you’ll need to understand the market value of your property. This may involve checking out sources such as QV. A registered valuation of your home will give you an expert opinion.
To calculate your equity:
Take the market value of your home
Subtract the amount you owe on any lending secured by the property.
For example, if the market value of your home is $500,000 and your total lending amount is $200,000, then your equity would be $300,000
Making improvements to your property may increase its value and may increase your equity in your home. However this will depend on how much you borrow to renovate and what the market value of your home is after the improvements.
You can apply for a top-up on your home loan online in FastNet Classic. The application only takes about 10 minutes to complete, and there's no need to visit a branch.
Don't have FastNet Classic internet banking? Call 0800 FAST NET today and we'll help to get you up and running.
ASB’s lending criteria, terms and fees apply. A Low Equity Margin may apply.
The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.