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  • Writer's pictureMelanie Dennis


Equity. We hear this buzz word in the property market every day but what does it actually mean, do you have any and if so, how can you get your hands on it!?

Equity is the difference between the value of your asset and the value of your loan. For example, if you bought a car for $15,000 but you owe $5,000 on a car loan, you have $10,000 in equity.

The same rule applies to property.

You may have owned your property for a long time, recently purchased in a high growth area, or completed improvements to your existing property. In all of these situations the value of your property may have increased, boosting your equity.

Accessing your equity can provide you with cash to purchase another property, complete a renovation or go on a dream holiday! So, how do you know if you have any equity and how do you access it? Follow these three simple steps:

1. Value your property: Ask your local real estate team for a market appraisal and/or ask your bank or mortgage broker for a bank valuation to determine the current value of your property.

2. Calculate how much equity is available: Typically you can access equity by increasing your loan up to 80% of the property value. For example, if your property is now worth $500k, you could increase your loan to $400k. If your current loan is $300k, this means that $100k equity is available.

3. Access the equity: This step involves a new loan application to the bank. As with all home and investment loan applications, the bank will assess your financial position to determine whether you qualify for the loan.

If you believe you have equity available in your property, speak to your mortgage broker who can complete the work for you. They can arrange the bank valuation and your new loan application whilst you daydream about all of the new possibilities.

So the question begs, what will you do with your equity!?

Thank you to Mark Daniel from Remarkable Finance Pty Ltd for providing this week’s blog article. If you are looking for a terrific Finance Broker call Mark directly on 0412 443 993 or email


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