Welcome to the forums and thank you for reaching out to us.
You can use your equity to buy a second property even with no deposit
A home equity loan basically lets you borrow against the equity you have in your home and invest it in another property, renovate
, repay your debts (consolidate), etc.
Since you are using the equity to buy a second property, you will need a letter from your conveyancer to confirm you are looking for a property or a copy of the contract of sale when a property is found.
To qualify for an equity home loan:
- You must owe less than 80% of the property value on your home loan.
- Perfect mortgage repayments.
- Provide last two payslips.
- Provide most recent group certificate.
- Credit file must be clear of black marks.
- You can generally release up to 80-90% of the value in your property in equity to buy a second property.
If you do borrow above 80% of the property value, then you will have to pay Lenders Mortgage Insurance
fees which can be quite expensive.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for an equity home loan.