Conversations with a pug – Adding the Renovation Costs to Your Current Home Loan |

Conversations with a pug – Adding the Renovation Costs to Your Current Home Loan

Adding-the-renovation-costs-to-your-current-home-loan

 

 

 

One of the most common ways to fund a renovation is through equity built on an existing home loan.
Simply put, equity is the difference between a bank’s valuation of a property and the amount of money a person owes on a home loan. This builds up over time because the value of a property increases and the balance of a home loan decreases.
Using equity will help you avoid the additional costs of creating a new loan, however if you increase your LVR by over 80% you may have to pay lender’s mortgage insurance.
 
To discuss the pros and cons of adding renovation costs to your current home loan reach out and we’ll talk.

My Very Best To You Always,

 

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