Australian Home Equity Loans
Most Australian's have built up some equity in their homes, which you can use to set up a line of credit. With these new funds you can plan your next venture and get on with life. If you take out a home equity loan for income-producing investments, such as shares, the interest may also be tax deductible.
How does it work?
Home equity is simply the difference between what your property is worth, and what you owe on it. For example, if you have $100,000 to pay off on a home worth $700,000, you have $600,000 worth of home equity. You may be able to borrow against this amount (usually only if you own 20% equity in your own home already) to renovate, invest in shares or managed funds, buy another property or refinance your mortgage. In the right circumstances, home equity and equity loans are excellent ways to finance your needs.