Renovate your home
Chances are your home has increased in value, and you’ve reduced your loan balance over time.
If your home needs a facelift and renovations are on the agenda, it can be worth unlocking the useable equity, and borrowing more to make the changes.
Invest the money
If your property has increased in value, the amount of equity you could divert into investments could create wealth opportunities.
This means you could make purchases that will increase your asset base – such as investment properties and shares.
Smooth out life’s bumps
Life events like buying a new car, taking a holiday, or paying for education expenses can make us feel stressed about managing the costs.
However, using the equity you have in your home can be a way to ease the financial burdens that life throws at you.
Borrowing against your equity can help you pay off the loan over a longer period of time, reducing the impact of large one-off payments.
Line of credit loans can also help to unlock your equity and give you funds needed for life events. But keep in mind that the interest rates on these tend to be higher.
You’ll also need to cover the interest charged every month, with the amount borrowed to be paid off at some point in the future.
Term loans are another possibility, but these are best discussed with your banker.
Above all, remember to play it safe
Unlocking all your equity to improve your lifestyle or wealth will increase your level of risk. That’s why it’s always a good idea to consider how much lending you take on.
To make sure you have a plan in place, it’s best to speak with an expert. Simply contact one of our financial advisors – they’ll help you figure out the best solution for your situation.