Home Equity LoansHome Equity Loans

A home equity loan is one of the best ways to gain financial help. It allows you to capitalize on the equity that has built up in your existing home. You can refinance your existing property and use that money to pay bills, carry out renovation, purchase new property, etc. There’s really no limit to what you can do with the equity loan. Naturally, we recommend that you spend the money wisely. At Mortgage Providers, we’ve observed that lenders are very reluctant to grant loans to people when they don’t know what they’re spending it on. So, if you intend to purchase a new property with it, or something similarly useful, we will let the lender know.

About Equity

Equity is essentially the value of your home, or the value of the portion you have already paid for. For example, if you’ve completely paid off your mortgage and are in the clear, the entire current value of your home becomes equity. So, if your home is valued at $400,000, your equity is equal to that. If you still have to pay off 50% of your mortgage, your equity stands at 50% of the home value. In this particular example, that means you can borrow up to $200,000.

Of course, there’s no hard and fast rule that you must borrow the entire equity amount. In fact, we don’t recommend that at all. You should borrow only as much as you need. For example, if you need to take home equity loans to purchase a car that’s worth $25,000, it’s a good idea to stick to that amount.

Why Home Equity Loans?

Home loans offer better interest rates and tax deductions than other loans. They’re also easier to get in comparison to other such loans. That’s one of the reasons why people choose to refinance their home instead of getting any other type of loan. You can use the home equity for several different purposes. There are several Australians who unlock their home equity to finance their business. You can also use the home equity loans to get money for remodelling your house.

If you have pressing debts in the form of personal loans and credit card bills, you can consolidate those loans. You can use the money you get from your home loan to pay off those debts. With the high interest rates charged by credit card companies, this is a good financial decision.

Our mortgage experts will help you get the best home equity loan deal. We will explain the eligibility criteria, recommend good lenders, and help you with the application process. With us in your corner, you can expect the loan application to go through quickly and painlessly.

Things to Consider

Your home is your security and shelter. If you’re not able to pay back the loan, you might lose it and that can have devastating consequences. That’s why we recommend that you only apply for home equity loans if you practice restraint and don’t spend frivolously. You should only refinance your home if you’re completely certain that you would be able to pay back the loan and not risk losing it. If you’re not certain, we would strongly recommend that you look at other options.

If you want to know more about our home equity loans, all you need to do is get in touch with us at Mortgage Providers. You can do that by filling in this contact us form or calling us at 1300 65 6600. You can ask for free expert advice or enquire about the loan. We will reply as quickly as possible with answers.