Your home equity could be used for a wide range of purposes, such as improving and renovating your home or even going on a dream holiday. Let’s take a look at how refinancing could help you achieve your financial goals.
Access equity to buy a car
If you are considering a new car but you’re not sure how to finance it, refinancing your home loan could be an option.
Adding the cost of a car to your home loan can mean that this amount is paid back over the full term of your home loan or you may want to make accelerated loan repayments to pay your car off sooner, similar to a car loan. Having a car loan on your home loan will allow you to access home loan rates, which will allow you to save interest and pay your loan off sooner.
Refinancing to fund home improvements or renovations
Refinancing through equity cash out or a construction loan is a common way to raise funds for a renovation.
Otherwise, you could also consider a construction loan, which is specifically for the purpose of building or making structural changes to your property. The amount of a construction loan is based on the predicted value of the property at completion, which can allow borrowers to access large amounts of money.
Buying and investing
Buying an investment property may be a good strategy for accessing rental return and potential capital gain.
By refinancing your existing home loan, you gain access to your home equity. You could then use this equity as a deposit to purchase an investment property.
Speak to the Auspak team to ensure refinancing to invest is the right decision for you. Refinancing could be the way to reach your financial goal.