Navigation

Haven Accountants and Financial Advisers

Home Mortgages Property Investment Freeing up Equity

Mortgages

Freeing up Equity

If you currently own a property, you may be able to borrow from it to purchase a second home or investment property.

How does it work?

Your equity is essentially the difference between the current value of your property and how much you still owe on your mortgage. It started as the initial deposit on a home and as you pay off your home loan, your equity will grow.

If you currently own a property, you may be able to borrow from it to purchase a second home or investment property.

How does it work?

Your equity is essentially the difference between the current value of your property and how much you still owe on your mortgage. It started as the initial deposit on a home and as you pay off your home loan, your equity will grow.

Meet Annie and Mark

Annie and Mark have had their house valued at $760,000.

They have $210,000 left to pay on their home loan. That means they have $550,000 in equity.

They would like to purchase an apartment for their daughter Melanie as an investment. The apartment is worth $500,000.

Melanie does not have a deposit so Annie and Mark would like to use the equity of their home for the purchase. They agree on $200,000.

Annie and Mark now have their home and an apartment for Melanie worth a total of $1,260,000. They owe $710,000 and their equity across both properties is $550,000.

Annie and Mark have had their house valued at $760,000.

Mortgages_FreeingUpEquity-Mobile_Slider1

They have $210,000 left to pay on their home loan. That means they have $550,000 in equity.

They would like to purchase an apartment for their daughter Melanie as an investment. The apartment is worth $500,000.

Mortgages_FreeingUpEquity-Mobile_Slider3

Melanie does not have a deposit so Annie and Mark would like to use the equity of their home for the purchase. They agree on $200,000.

Annie and Mark now have their home and an apartment for Melanie worth a total of $1,260,000. They owe $710,000 and their equity across both properties is $550,000.

TO MAKE THE MOST OF YOUR INVESTMENT OPPORTUNITIES

Request an appointment

We think you might also like

Strategic Business Advice

We use our extensive experience in business management and accounting to provide foundations for your business growth.

Read more

Business Insurance

We offer a range of business protection options that insure commercial assets such as buildings and plant equipment, or third party property damage.

Read more

Trusts

If you are concerned about the administration of your trust, or would like to discuss how to keep your assets with their rightful owner, contact us today.

Read more

Apply for a mortgage

Whether you're buying your first home or looking to invest in a new property, we've got you covered. Fill out the mortgage application form below and let's get started!

Read more