The next step

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TheFinanceShop
Participant
@thefinanceshop
Join Date: 2012
Post Count: 1,271
January 23, 2013 - 10:01 pm
I read it as if he is taking 80% of the value of the property and then subtracting the existing loan amount for this to get his equity.
Paul – what is the current value and loan amount?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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Paul B.
Member
@paul-b.
Join Date: 2013
Post Count: 70
January 23, 2013 - 10:06 pm
Hi Jamie,
Property is worth $375,000 and $325,000 is outstanding.
Does this mean that I essentially have no useable equity? i.e. 80% of value is $300,000.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
January 23, 2013 - 10:09 pm
Paul B. wrote:
Hi Jamie,
Property is worth $375,000 and $325,000 is outstanding.
Does this mean that I essentially have no useable equity? i.e. 80% of value is $300,000.
Hi Paul
There's not a lot there.
If you can take your current loan up to 90% LVR – then there's only $12k you can access.
$375k value * 0.9 = $337.5 (90% of properties value)
$337.5 – $325k (current loan amount) = $12.5k (available at equity at 90% increase)
Cheers
Jamie
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Paul B.
Member
@paul-b.
Join Date: 2013
Post Count: 70
January 23, 2013 - 10:19 pm
Oh bugger. This is why I thought to get on here first before heading down to the bank. Will have to wait.
The NAB home equity calculator is very misleading. (http://www.nab.com.au/wps/wcm/connect/nab/nab/home/Personal_Finance/1/4/101/7/)
Thanks Jamie, Cubez and Shahin for your help.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
January 23, 2013 - 10:25 pm
Yeah I'm not sure whey they provide that. It just shows your actual equity – which is taking the value of your home and subtracting the loan amount.
They won't allow you to access your actual equity because that essentially means you're borrowing 100% of your properties value.
We've been able to go up to 95% on equity releases previously (most recently with CBA) – but they're not the most enjoyable experience. The deal has to be extremely strong and the purpose of the equity release sound.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]