Does your lender have your sights on a second home or property? That lender can maximise their buying power of their next home by utilising their current home’s equity! With a lender’s accrued equity in their existing home, they may be eligible to use up to 80% of that equity towards their next home or property purchase.
Home equity loans. First, the lender will need to provide their mortgage broker with validation paperwork and even other supplemental paperwork to validify the reasoning behind buying a second home under a home equity loan. A letter from a conveyancer should suffice and be included within your loan application. The lender should also be able to convey to their mortgage broker that your property will be used as a security where its equity will be used as a deposit to support a second home loan. If you are approved, your mortgage broker may provide the loan as a line of credit or a lump sum amount.
Acquiring a deposit by using a home’s equity. With a home equity loan, most mortgage brokers can help lenders utilise up to 80% of the home’s current equity towards a second property as large as 40 hectares or a purchase of a single dwelling or as many as four dwellings on a single title. Some mortgage brokers also offer home equity loan repayment options that span upwards of 40 years. Lenders should get in contact with their mortgage broker to see how they can apply their home’s equity towards their next home or property purchase.