Equity can be defined as the difference, expressed in monetary terms, between the Value of a Item (Home, Land, Artwork, etc) and the Amount Owing on it.

Where your residential property Value is higher than the Debt (Positive Equity), it may be possible to access some of that Equity for use elsewhere, some methods are listed below.

Redraw: Where additional payments have been made exceeding the amount required, you may be able to ‘redraw’ the excess payments. This will increase the amount owing by the amount being ‘Redrawn’, so caution is required.

Top up: Where the value of a property has increased over time, it may be possible to increase an existing mortgage (Top up) to access some of that increased value (equity) Again, this will increase the debt, so caution is required.

New Purchase: The equity in one property can be used to secure finance for the purchase of another property.

Reverse Mortgage: In some cases, you may be able to obtain up to 20% of the equity in your property and not make any repayments.

This 'Reverse Mortgage' will accrue interest and the debt will grow over time. The Reverse Mortgage debt will only fall due on the sale of the property or after the death of the owner.

It allows people with Equity in their property to access cash for any number of reasons, especially when they may not have sufficient income to afford repayments.

Your Link Mortgage Broker understands the methods mentioned above and is able to steer you through the process and explain the benefits and costs involved.

The first step is to call our friendly team on 9272 9344 or use the Contact Us form and one of our team members will be in touch.