Can i use equity as a deposit

A further advance is where you take on additional borrowing from your existing lender, usually at a different rate to your current mortgage, and use this as your deposit. Then, when you come to remortgage your home, you can release equity to pay off the further advance. For many, this is a much quicker way to raise a deposit for an investment property, compared to saving up enough cash month on month. If you would like more information on how to use equity from your home as a deposit, speak to one of our experienced brokers who will able to assess what the best option for your circumstances is going to be.

Get in contact with us: or If you're thinking about how to finance a second property, did you know you can unlock your existing home equity to do so? Access your equity, get pre-approved today. What is equity in your home? The equity in an asset is its value, less any money owed on it. Using equity : How does equity work? Calculate your equity Line of credit or lump sum A line of credit loan means a certain credit amount is approved based on your usable equity. Should you cross collaterise?

Risks As with any investment, it pays to be aware of the risks. Can you use equity to buy a house with no deposit? How much equity do you need to buy another home? Advantages of using equity to buy another home Many investors use equity in their existing properties to purchase more investment properties, which enables them to build a bigger investment portfolio.

Using equity to buy an investment property Equity is one of the most powerful tools property investors have at their disposal because it allows them to build their property empire faster. How does accessing equity affect your loan repayments Accessing your equity can increase how much you owe as well as the interest charged which means your home loan repayments will likely increase.

Can you buy a second house and rent the first? Related articles. How to apply for a home loan. If you're thinking about taking the plunge into home ownership, here's what you need to kn Understanding equity in your home. Equity is an important asset for every homeowner as it can be beneficial in many ways.

How much deposit do you need to buy an investment property? TAP to chat! New Customer? Yes No. Enquiry type Have you found a property? Would you like a free property report?

What are your plans? In the future, this means any decisions you make to one loan or property may impact the other. For example, if you sell one property later, the money from the sale may be used to reduce your other loan.

This depends on the purchase price of the property you want and the equity you already have — a Home Lending Specialist or broker will be able to give you specific advice based on your situation. You can talk on the phone, meet at a branch, or have a Mobile Lending Manager come to you. Home Home buying Guides How to use equity to buy an investment property Guides.

How to calculate your usable equity.