Refinancing unlocks the equity sitting in your Perth property right now. Equity is basically the gap between what your home’s worth today and what you still owe the bank. Plenty of Perth homeowners grab this money for renos, buying investment properties or wiping out expensive debts. If you want a clear plan and lender options that fit, Broker Advisory Services can run the numbers and explain what’s actually possible.
How This Equity Thing Actually Works
Your home’s probably worth more now than when you bought it. Perth’s property market has climbed pretty well in most suburbs lately. You’ve also been chipping away at your mortgage balance every month. This is where the right Home Loans structure can make a big difference when you refinance.
Let’s break down a real scenario here. You picked up your home five years back for $500,000 with a $400,000 loan. Fast forward to today and it’s worth $600,000 while you owe $350,000. That means you’ve got $250,000 in equity just sitting there.
Banks typically let you borrow up to 80% of what your property’s worth. Based on that $600,000 value, you could borrow $480,000 total. Take away what you still owe and boom, you’ve got about $130,000 you can access through refinancing.
What Perth Owners Actually Do With Their Equity
People refinance for all sorts of reasons around here. Some throw money at major renos that pump up their property value even more. Others use it to jump into Perth’s investment property market.
Here’s what we see people doing with their equity most often:
- Updating tired kitchens and bathrooms or building extra bedrooms
- Snapping up investment properties in Perth’s growth suburbs
- Clearing out credit cards and personal loans charging crazy interest
- Backing Business Loans ideas or paying for uni courses
Consolidating debts makes heaps of sense when credit cards hit you with 20% interest and mortgages sit way lower. Rolling everything into your home loan seriously cuts what you’re paying in interest. If you’re also thinking about Buying a Home soon, refinancing can help you plan the next move without guessing.
Getting Your Perth Property Valued Right
Perth property prices jump around depending on which suburb you’re in. Some spots have gone through the roof while others barely budged. You need a proper current valuation before refinancing to tap your equity.
Lenders also check whether you can actually handle the bigger loan repayments. They’ll look at what you earn versus what you spend. Our mob at Broker Advisory Services works out exactly how much equity you can grab based on your numbers.
Let’s Get Your Equity Moving
We’ll value your property, crunch your available equity and hunt down lenders with decent rates. Contact us today and we’ll sort your refinancing from go to whoa.
