Equity Home Loans
Home equity loans and reverse mortgages allow you to access the equity you have built up in your home.
Borrowing against the equity in your home may seem a very appealing idea. You can continue to live therehe repayments do not usually have to be made until the owner of the real estate either dies or moves into long-term care. As most retirees to do not have a regular income, these loans can suit their needs well. the loan can then be paid out, in full, upon the sale of the property. Home owners over 60 years can borrow between 15% and 45% of the value of the property.
You can borrow varying amounts, depending upon what is available and what your needs are. Borrowers can either take a lump sum or access smaller installments in regular payments. There may be issues to address in regards to tax, pensions and the like, so talk the idea over with a qualified mortgage broker. AdvantagesThe funds can top up your income, on top of pension or superannuation policies and you are able to continue living in the home. This is a great advantage to customers who do not want to move from their home or suburb, but need access to extra funds.
ConsiderationsConsider the long term implications of the loan. The loan will need to be paid in full whenn the home is sold so ensure that there is sufficient equity to cover the increasing interest. You can protect yourself by getting a ‘no negative equity guarantee’ from your lender. Reverse mortgages can be more expensive than traditional loans and can be restrictive, with few added benefits.
If you own your own home but do not have enough funds for living expenses then you could look at this type of home finance. A reverse mortgage can also be useful for home owners who may be looking to retire in the next few years, or borrowers wishing to upgrade their property who need access to extra funds.
If you are interested in finding out about a home equity loan, call us on
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