Equity Release
Your home is likely your greatest financial asset, and over time, as property values rise, so does your wealth. But that wealth is often “locked” in the bricks and mortar of your house.
At Classic Loans, we help homeowners access that value without having to sell their beloved family home. An Equity Release (often referred to as a “Top-up” or “Home Equity Loan”) allows you to use the debt-free portion of your property as collateral to fund your next big move.
What is Home Equity?
Equity is the difference between the current market value of your property and the amount you still owe on your mortgage.
The Equation: >
$$Current Market Value – Remaining Loan Balance = Your Equity$$
As you pay down your loan or as the market value of your home increases, your equity grows. Classic Loans specializes in helping you “tap” into this pool of funds for a variety of purposes.
- First Home Buyers: Start Your Journey Right
The Australian property market can be intimidating for first-timers. We take the stress out of the equation by:
- Calculating your true borrowing power.
- Assisting with First Home Owner Grants (FHOG)and stamp duty concessions.
- Explaining the difference between fixed, variable, and split interest rates.
- Equity Release: Unlock Your Wealth
Your home is likely your biggest investment. If your property has increased in value, an Equity Release allows you to access that cash without selling. Use it to:
- Fund a major home renovation.
- Provide a deposit for an investment property.
Consolidate high-interest debts into one lower rate.
- Construction Loans: Build from the Ground Up
Building a new home requires a specialized loan structure. Unlike a standard mortgage, a Construction Loan involves “progress draws,” where the bank pays your builder in stages (Slab, Frame, Lock-up, etc.). We manage the coordination between you, the lender, and the builder to ensure a smooth construction process.
- Self-Employed & Specialist Lending
If you run your own business, your tax returns might not tell the whole story. At Classic Loans, we are experts in Alt-Doc (Alternative Documentation) loans. We work with specialist lenders who understand business owners, allowing you to secure a home loan based on your actual cash flow and business performance.
Loans
How Can You Use Your Equity?
Unlocking equity provides you with a low-interest source of funding compared to credit cards or high-interest personal loans. Common uses include:
- Property Investment
Use your existing equity as a deposit for an investment property, allowing you to grow a portfolio without spending your cash savings.
- Home Renovations
Whether it’s a new kitchen, an outdoor deck, or a full extension, your home can fund its own transformation.
- Debt Consolidation
Roll high-interest debts (like car loans or credit cards) into your mortgage rate to lower your overall monthly commitments.
How Can You Use Your Equity?
Property Valuation
We arrange a professional valuation to determine exactly how much your home is worth in today’s market.
Usable Equity Calculation
Lenders typically allow you to borrow up to 80% of your home's value (minus your current debt) without incurring Lenders Mortgage Insurance (LMI).
Lender Comparison
We scan our panel of lenders to find the one offering the best "Top-up" rates and features, such as offset accounts.
Fast Approval
We handle the paperwork to ensure you get access to your funds as quickly as possible.