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How Home Equity Works and Why It Matters

Equity is the difference between the market value of your home and the amount you still owe on your home loan.
Equity is also a powerful tool that can help you to build a profitable investment property portfolio or you can borrow against it to do renovations or for any other purpose.

Refinancing

This involves replacing your existing home loan with a new one, ideally with better terms and conditions and a lower interest rate. Because it’s just one loan, it can be easier to manage than an equity loan.

Equity loan

An equity loan is a separate loan you take out in addition to your home loan. It’s often a line of credit which gives you approval to borrow up to a certain amount. You can then choose how much of this you borrow, and you only pay interest on what you use.

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Legal information about our rates
Our home loans are subject to credit criteria and eligibility requirements. Home loan interest rates are for new customers only and can change. Our comparison rates are based on a $150,000 loan amount over a 25-year term. They factor in fees associated with applying for the loan; ongoing fees and fees associated with leaving the loan. Our fixed loans roll to a variable principal and interest rate at the end of the fixed term. If the interest only period is not specified, the comparison rate is calculated on a 5-year period.

WARNING: The comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Other legal information
At Tiimely Home we are not financial advisers and recommend seeking independent financial and legal advice to check how the information we provide aligns with your individual circumstances.