If you're already a homeowner
What is equity?
Equity is the difference between the value of your current home and the amount still owing on it. So if your home is valued at $600,000, and you still owe $300,000 on your current home loan, the equity in your home is $300,000.
Using home equity to build your wealth
Your home equity generally grows over time. This increase may be thanks to an increase in the property market, your dedication to repaying your loan by making additional repayments or a combination of these things. Equity in your home is valuable as it’s building your wealth. It can also be used to secure funding for a deposit on a new investment property. If you do this with Suncorp Bank, you can borrow up to 90% of the property value (inclusive of Lenders Mortgage Insurance). But keep in mind, if you borrow more than 80% of the property’s value, you’ll have to pay Lenders Mortgage Insurance.
Enquire online to speak to someone from our experienced team of home loan specialists.
Ways to build your home equity
1. Renovations and home upgrades will add to the value of your home.
If you're savvy about the planning and budgeting that goes into a renovation project, you could reap the rewards of higher value in your home. Whatever renovations you may be considering, research is key to your success.
2. Make your repayments regularly
It may sound simple, but keeping regular or even increased repayments is the best way to reduce your loan balance and grow your equity. Use the Suncorp Bank loan repayments calculator to work out how much you could save through different repayment scenarios and timeframes. But make sure you check whether your loan allows you to make extra repayments or whether this will incur a further cost.
3. Use a lump sum payment
If you've got access to a lump sum payment you might be tempted to splurge on a holiday or new car. But another option is for you to use this as a lump sum payment towards your home loan. Speak to your Home Loan Specialist to confirm whether this is an option that's suitable.
Home Loans are issued by Suncorp-Metway Ltd ABN 66 010 831 722 No 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available upon request. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Disclosure Statement before making any decision regarding the product. Contact us 13 11 55 for a copy.