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Home Equity Loan

Home Equity Loan

If you need a loan to buy a second or third property, to invest in stocks or to renovate your home, you can apply for Australian home equity loans. If your existing property has no encumbrance and you have more than 20% of equity on your home, you can apply for a home equity loan.

 

What is a home equity loan?

Home equity loans or the line of credit loans are given to the home owners to renovate their home or to buy a second property. Home equity is the difference between the value of your home and the money you owe. Suppose you owe $100,000 and your home value is $450,000, so, your home equity will amount to $350,000. You can apply to take a loan worth $350,000. 
In this type of loan, the loan balance will reduce each month by the amount of cash coming in and it will increase if you withdraw cash or pay your credit bills with this cash. However, as you have to make the minimum interest-only payment each month, your interest can add upto a large amount over the loan term. 

 

What are the benefits of home equity loan?


The 8 advantages of a home equity loan are mentioned below:

1.    It has flexible features, like, you have to pay the interest only each month and if you want, you can pay towards the principal also by paying extra in addition to the minimum repayment amount.
2.    You can use the money when you need and can put it back whenever you want
3.    The interest rates in this loan is lower than personal or credit card loans
4.    This type of loan takes less time to get processed
5.    You can use the money for any purpose
6.    It has redraw facility, so, if you need extra cash, you can have access to it
7.    If you pay wages into your account each month, the interest decreases
8.    If you make an extra payment in addition to your fixed repayment amount each month, your loan term will shorten
 
You need to remember that if you miss to make the monthly payments and become a defaulter, your home will be taken away by the lender. You should also remember prior to taking the home equity loans that, if you opt for a longer loan term, you will end up paying more interest.

 

Compare Home Equity Loans >>

Provider Mortgage Interest Rate $250k (pa) Comparison Rate (pa) Features
Home Value Loan - Owner Occupied 3.65% 3.66% No monthly fees (other fees and charges may apply) Borrowing from $50,000 and up to $7 ... Go to site
Low Rate Home Loan with Offset <80 P&I 3.69% 3.72% Go to site
UHomeLoan SVR Value Offer (P&I) 3.74% 3.74% Go to site
Orange Advantage ($150k+ where LVR <=80% - O/Occ) - Principal & Interest 3.79% 4.11% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
Flexible Home Loan with Member Package - Owner Occupied – LVR ≤ 80% – Loan Amount $150k < $400k 3.79% 4.20% Created by Australia’s leading industry super funds, ME Bank stands for a new kind of ... Go to site
Orange Advantage ($150k+ where LVR >80% and <=90% - O/Occ) - Principal & Interest 3.97% 4.29% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
Basic Home Loan - Owner Occupied with LVR 80% or less 4.09% 4.11% Created by Australia’s leading industry super funds, ME Bank stands for a new kind of ... Go to site
NAB Base Variable Rate Home Loan - Principal and Interest 4.17% 4.21% For a limited time the Application Fee of $600 for new home loans will be waived. Go to site
NAB Defence Force Variable Home Loan - Principal and Interest 4.45% 4.58% Go to site
Orange Advantage ($150k+ where LVR >90% - O/Occ) - Principal & Interest 4.75% 5.05% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
NAB Tailored Home Loan Variable Rate - Principal and Interest 5.24% 5.37% For a limited time the Application Fee of $600 for new home loans will be waived. Go to site
2 Year fixed discount rate Home Loan Privileges Package $150k plus (OO) (fixed) Flexible repayment options Free additional repayments up to $5,000 per year  
Provider Mortgage Interest Rate $250k (pa) Comparison Rate (pa) Features

Compare more home loans >>



 

Home Loan Comparison interest rates in this table are based on a loan amount of $150,000 and a term of 25 years.

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