HI EVERYONE, TO CUT TO THE CHASE, I HAVE JUST PURCHASED MY FIRST HOME AND THE MASTER PACK,
MY QUESTIONS ARE THIS:
I OWE 200,000 THE BANK VALUED IT AT 240000, HOW CAN I USE THIS EQUITY???I ONLY BORROWED 200000 AND I PAYED A DEPOSIT UP FRONT..
QUESTION 2 – IF I CAN USE IT TO BORROW AGAIN ON ANOTHER HOME, HOW DO I AND IS IT TO SOON AS I HAVE ONLY JUST SIGNED THE PAPERS, PLEASE HELPPLEASE
JAS
First thing don’t use CAPITALS on the internet
Second point 40,000/200,000 = 20% You cannot use this equity as you need to have a LVR of 80% unless you took out mortgage insurance with the loan..
However if you can increase the value of the property with either time or improvement you can borrow the extra money that brings the LVR back up to 80%.
example
40,000 deposit (20%) loan 200,000 (80%) = total value
Time or improvement
40,000 deposit (14%) , 200,000 loan (71%) 40,000 increase = total value
$224,000 (80%) LVR now $24,000 extra borrowable against equityComments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
maybe you made the mistake that i made, you should have somehow got the loan at 100%, then you would have been infront on your loan 40k then you could use it how ever you wanted.
Not much you can do right now. You are still in good shape having a property.
Time for a lot of debt reduction and waiting around until the property goes up in value I think.Cheers,
Marc.
[email protected]Why not set up a Line of Credit to 95% of the valuation and utilise the equity this way.
Sure you will end up paying a bit more LMI but that is just a cost of investing.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Yes I have to agree, paying mortage insurance LMI is a one of fee and if you want to have access to more money it is one way of achieving it. Or as one of the other posters said, wait until your equity increases
Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280The LMI is also a Tax deductible expense if the purpose of the funds is for investment.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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