Using home equity to purchase an investment property is a common strategy that can help you grow your property portfolio. Here’s how it works:
Equity Calculation:
To calculate your home equity, subtract your outstanding mortgage balance from the current market value of your home. For a detailed explanation, visit our Second Home Buyer page.
To calculate your home equity, subtract your outstanding mortgage balance from the current market value of your home. For a detailed explanation, visit our Second Home Buyer page.
Accessing Equity:
You can access your home equity through refinancing or a home equity loan. Refinancing involves taking out a new mortgage to replace your existing one, often at a lower interest rate. A home equity loan, on the other hand, allows you to borrow against the equity in your home. For more information on refinancing, check out our Advanced Finance Strategies.
You can access your home equity through refinancing or a home equity loan. Refinancing involves taking out a new mortgage to replace your existing one, often at a lower interest rate. A home equity loan, on the other hand, allows you to borrow against the equity in your home. For more information on refinancing, check out our Advanced Finance Strategies.
Benefits:
- Lower Interest Rates: Home equity loans typically have lower interest rates compared to other types of loans because they are secured by your property.
- Potential Tax Advantages: You may be able to deduct the interest paid on a home equity loan when used for investment purposes.
For more insights on the benefits, visit our Mortgage Glossary.
Discuss with your mortgage broker to understand the best way to leverage your home equity for investment.
Our mortgage brokers can help you navigate the complexities and find the most suitable options for your financial situation
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