Home equity loans are the key to unlocking the equity tied up in your property.
You can use a home equity loan to:
Home equity loans are undisputedly one of the best ways to access your home’s equity.
With house prices booming all across the country, chances are that your home value has skyrocketed.
What an ideal time to access some equity out of your property value while interest rates and your borrowing power have never been better!
A Home Equity Loan effectively releases equity that you have tied up in your property value.
How much equity you have in your home can be easily calculated by looking at the difference between how much your home is worth (using a fair market value) and deducting any existing mortgage balance or home loans secured by your property.
The more equity you have in your property, the more loan funds you can access!
Whatever your financial situation calls for, a home equity loan is the flexible answer.
If you need to buy stock or materials, pay outstanding invoices, pay staff etc
A home equity loan can be utilised for any business purpose, hassle free!
If you’ve got existing debt, a debt consolidation using a home equity loan might be the answer.
Unlike your home loan, where you’d be stuck paying interest on your debt for potentially decades to come, consolidating debt by unlocking a shorter-term home equity loan lets you access a more attractive interest rate and manageable monthly payment.
The interest rate that applies to home equity loans is significantly lower than most other personal loans, especially credit cards.
If you are suffocating from credit card bills, a home equity loan can give you the breathing space you need.
Home renovations are commonly funded through home equity loans.
The upside here is that as you improve your home, its value is likely to only increase further; so you’re essentially using equity to build further equity.
If you’ve unexpectedly come across some large one-off expenses, a home equity loan can help cover the cost.
Whether it’s medical expenses, an ATO bill, or you simply want more business cash flow, the flexibility of home equity loans means you can access funds for almost all purposes.
Investing using a home equity loan is possible, and you can even use the funds as a deposit towards an investment property or your next business workshop, office or franchise!
Home equity loans were previously offered over longer periods of time, anywhere up to 15 years.
We understand that for many homeowners, to borrow money for that long simply doesn’t suit their financial circumstances, which is why accessing a home equity loan through a private lender is all the more attractive — we offer home equity loans between 2 – and 36 months.
Our flexible loan terms are just another reason Australians come to us over other lenders in the market.
The maximum loan amount you can access is 80% (or more) of the equity in your home.
If you own your home outright, you can access 80% (or more) of the total value of your home!
Personal loans, on the other hand, are usually limited to $50,000, which may make a personal loan insufficient for funding your personal objectives.
Are second mortgages the same as home equity loans?
If you own your home outright, then a home equity loan isn’t considered a second mortgage.
However, if you have an existing loan with a mortgage over your property, then a home equity loan will be considered a second mortgage of sorts.
What are the rates on a home equity loan?
At DFS, we are proud to offer market-leading interest rates on our home equity loan.
We offer fixed rate and interest only loans, so your monthly repayments will always remain the same and be as low as possible.
Can a home equity loan be paid off early?
When you pay down a principal and interest loan, often the option to repay it early simply isn’t available.
At DFS, we don’t penalise you for early repayment of any of our loans, offering unlimited extra repayments to help you get ahead.
Backed by our Australian Credit Licence, you can apply online today, or contact us now to unlock the equity locked away in your home!
If the bank says NO, DFS can get you a YES!
While reverse mortgages are similar to a home equity loan, you can generally access the funds as a lump sum or regular income stream with a reverse mortgage.
Home equity loans, on the other hand, only provide the one lump sum to assist in funding a range of different needs.
Privately funded home equity loans are also much faster than reverse mortgages.
Home loan specialists certainly offer home equity loans, however, most lenders will put you through a rigorous application process, and you could be waiting months to see any money.
Accessing the benefits of private lending through DFS means that we can have funds to you in a matter of days, with a hassle-free application process.
An offset account doesn’t affect the home loan balance itself but could be counted as equity in your home.
It’s therefore important to check with the financial institution that holds the available funds if your offset will be impacted in the event you borrow additional funds against your home.
The chances are, that if you have an offset account, only some of your property’s equity will be sitting there.
The majority of your equity is likely tied up in your property’s value in the market.
Therefore by performing an equity release through a home equity loan, you can potentially access far more that you could on your offset.
Plus, any balance drawn from your offset effectively increases the principal amount that you’re being charged interest on, so depending on which interest rate is applicable on your home loan, you may actually access a better interest rate through an equity loan.
Mortgage brokers and credit unions entice consumers in with low interest rates, but often are riddled with additional fees and rigid inflexibility.
Not to mention, their low advertised rates can often only last for an initial period before reverting to the standard rate.
Private lenders like DFS can provide far better flexibility and a personal assessment of your situation, approving you for finance where other lenders may not.
A home equity loan through Diverse Funding Solutions provides you with a lump sum of funds to help with a wide range of finance purposes.
You’ll be surprised by our low fee loans, which keep your monthly payments low.
Contact us to learn more.
