We LOVE equity! But poor equity... so often misunderstood...
🏡 Misconception: Equity is "Free Money"
Accessing equity is taking out more of a loan. That loan must be repaid (with interest). Accessing equity increases overall debt.
🏡 Misconception: Having Equity Guarantees Loan Approval
A loan approval (to obtain equity) is based on the factors a lender takes into account. One important factor is borrowing power/serviceability - can the borrower afford the increased repayments?
🏡 Misconception: The Tax Deductibility of Equity
Generally, pulling out equity from an investment property doesn't automatically make that equity loan tax deductible. Deductibility is based on purpose [You'll need tax advice here].
🏡 Misconception: You Can Always Access All Your Equity
If your borrowing power doesn't allow for it, equity can't be just "accessed". Equally, there's a difference between 'total' equity and 'usable' equity, based on LVR (Loan to Value Ratio) and lender appetite.
❗ Hot Tip - talk to an awesome Mortgage Broker like Truly Finance for professional equity advice and structuring.
Truly's advice, financial services and property strategies are complimentary. We do this for the best interests of our clients and we relentlessly strive to serve as the best mortgage brokers in Australia with uncommon excellence!
James Brett. Principal Mortgage Broker ☎️ 0439 591 759
Victor Simone. Principal Mortgage Broker ☎️ 0449 659 029
Nermalee Bowe. Senior Mortgage Broker ☎️ 0431 274 554
Dragan Disljenkovic. BD & Relationship Manager ☎️ 0422 435 900
Credit Representative Numbers 521733, 550284 & 547037 are authorised under Australian Credit Licence 389328
