How To Leverage Your Existing Home Loan For Your Next Purchase
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By now you may have held your loan for a number of years, in which time you have built equity which means you have paid off principle. For example, your home may be valued at $800,000 with $400,000 of the loan still outstanding, which means you have \ $400,000 worth of equity.
From this equity, lenders will usually set an 80% limit on the amount of equity you can access, otherwise, a Lenders Mortgage Insurance (LMI) will be applied to your loan which you will need to pay, this acts as a buffer in the event of fluctuating property prices or interest rates.
The equity in your home loan can be used to purchase your next property or fulfil any other ideas you have. The best place to start in understanding what will be best for you is by speaking to your IGM Broker. We help hundreds of people every year leverage their existing loan for their next purchase, in a strategic way that will help increase wealth.
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