One of the most common causes consumers check out refinance a keen existing loan is mainly because they are seeking to use the security it features within their current property in order to borrow funds to own several out of motives.

1. To renovate an existing property
2. To get into money and make a good investment
3. To combine expenses.
4. To access currency to other aim including a holiday otherwise larger buy such as for example a vehicle

What’s equity?

Equity is the difference in your debts in your property additionally the worthy of a lender thinks your residence you can expect to offer having. Including, if you had that loan balance out of $500,one hundred thousand and you got your property valued during the $800,100000 you then could have $3 hundred,000 out of guarantee and you will financing-to-well worth ratio (LVR) out-of 62.5%. Continue reading →