Home equity is the value of the property that you actually own. In simpler words, your home equity is the difference between the current market value of your home and what you owe on your mortgage. Let us say that your property is worth €300,000 and you still have a mortgage of €100,000 – this means you have up to €200,000 in equity.
Naturally, your home equity can increase in different ways. Often (but not always), property values rise over time, therefore, your equity will get a boost if the market value of your property rises. Making home improvements might also be a means of increasing the property’s value and thus can also be a way of increasing your equity. Of course, you can also increase your equity by paying down your home loan.
How can all this help you? Home equity loans are a useful way to tap into the equity of your home to obtain funds when your assets are tied up in your property. They are generally offered at lower interest rates than other forms of personal loans because they are secured by your own home.
Unlocking the equity in your home could open opportunities you thought you could not afford! You may be able to use it to obtain funding to purchase the car or boat of your dreams, further your education, start off a business, conduct home refurbishments or purchase an additional property, amongst other things.
The affordability of a home equity loan is calculated by taking into consideration your gross income, any monthly commitments, and the equity available on your property.
So, let your home lend a hand and make your dreams a reality!
If you would like further information about a Home Equity Loan, MeDirect Bank has a team of professional advisors ready to help you out.
Visit www.medirect.com.mt/home-equity-loans/ to find out more or contact us on (+356) 2557 4400 or homeloans@medirect.com.mt to set up an appointment today!
MeDirect Bank (Malta) plc, is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.
