Picture your Future. Save for it by earning 1.5% on a 1-year Term Deposit Account! Learn more.

What is home equity and how can I use this to help my lifestyle?

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.

Join MeDirect today to access the tools you need to put your money to work on your own terms.

Latest news articles

Three investment themes at COP28
All News

BlackRock Commentary: Three investment themes at the UN climate conference (COP28)

The move towards low-carbon initiatives is one of the five significant forces or structural shifts that BlackRock observes for investment opportunities and risks. During the UN climate conference (COP28) in Dubai, their focus is directed towards three investment themes: climate resilience, facilitating climate finance in emerging markets, and new policy initiatives that may influence the trajectory of the transition.

Notes from the Trading Desk
All News

Notes from the Trading Desk – Franklin Templeton

Despite the upturn in market sentiment, it is clear to us that the global economy is not yet through the woods with regards to avoiding a recession; hence, chatter around potential rate cuts isn’t necessarily all positive.

Experience better banking

The sooner you start managing your money, your way, using the best-in-class tools, the sooner you’ll see results. Sign up and open your account for free, within minutes.


We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.