My current mortgage is $80,000 property value is $180,000. How much equity do i have?
I’m living in a house on a large block and considering building another house at the back (dual occupancy) for investment. Can I borrow the full amount of this new property considering I would have enough equity or do I need some cash?
Your equity is $100k. (180k less 80k loan).
Talk to a broker. The further amount you can borrow will depend on your income.
Hi Meegs,
If I am not wrong it is
80% of 180K = $144000 (I think 80% of the value is what banks will consider)
Mortgage = $80000Equity = $144000 – $80000 = $64000
Someone please correct me if I am wrong.
Hi Arungounder,
Technically you and are correct (how is that for a win-win).
Meegs has $100K in equity but ‘only’ $64K would be considered as suitable security for loan purposes at 80% – going to 90% releases security of $82K.
In terms of security Meegs has sufficient equity to borrow a further $320K provided she/he also meets servicing criteria.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks for your help with that.
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