Milestone Lending Solutions

Home equity is the wealth held within your own home

Home equity is the difference between the value of your home, and the level of any loans you have held against that home. For example, if your home is currently valued at $750,000 and your home loan is $300,000, you have home equity of $450,000. You can access this equity by borrowing against it and use it in many ways. For example, you can invest, buy another property or help your children get into their own property.

Use home equity as a deposit for another property

Typically you can use the equity in your current home as the deposit on an investment property or investment portfolio. It’s really important to choose the right lender and product. This is because the strategy you use will give you greater flexibility when it comes to managing your finances. If you are thinking of investing in property, talk to your Milestone Lending Specialist about a strategy to suit you.

Leverage into shares or managed funds

You can use your home equity to invest in a portfolio of shares, managed funds or other investments. Working with your financial planner, Milestone Lending can help you with a loan to release this equity so that you can diversify your wealth into other assets. Debt recycling is a strategy that involves investing the equity in your home into income producing assets such as shares, and using that income to repay your home loan. Click here for more information about this wealth creation strategy.

Help your children get into the property market

Many parents are using the equity held in their own homes to help their children get into the property market. There are specialist home loans which allow both the parents and the children to be part of the property purchase. Alternatively, you can borrow against your equity and gift this to your children to help get them started. It’s simple to do and makes a huge difference in the affordability of a home for your children.