What Is Home Equity?
Home equity is the difference between your property’s current market value and the balance of your mortgage. For instance, if your home is valued at $500,000 and you owe $300,000 on your mortgage, your equity is $200,000. This equity builds up over time as you pay down your mortgage and as your property’s value appreciates.
In Australia’s growing real estate market, homeowners often find themselves sitting on a substantial amount of equity, which can be a great tool in property investment. It’s like having a financial ace up your sleeve that you may not realise you possess.