How to use existing equity in my home

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Benny Dubria
Mortgage Specialist
Posts: 26
Joined: Mon Apr 29, 2013 3:00 pm
Location: Sydney, Australia
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Re: How to use existing equity in my home

Post by Benny Dubria »

Hi Kjt,

Thanks for posting on your forum.

Gathering from what you have said it looks like you will not need a deposit. You should be able to use the equity in your current property as deposit for your investment property instead.

If you do not cross-securitize the properties, what will occur is:

1. Your current loan will need to be increased.
a. Yes the repayment will also have to increase.
b. Most lenders will only allow you to increase the loan up to 90% of the property value.
c. The amount you increase the loan by will be used to cover your deposit and other costs associated with the purchase of the investment property such as stamp duty and legal fees.
2. You will need to obtain a separate investment loan to cover the remaining of the purchase price for the investment property.

Otherwise if you wish to cross securitze your loan what will happen is both your current property and your investment property will be secured on one single loan.
Benny Dubria
Senior Mortgage Broker
P | 1300 889 743 E | benny@homeloanexperts.com.au
Home Loan Experts

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