Home equity home loans
- What is a Home Equity Loan?
- A home equity loan allows you to use the equity in your home to fund other items such as cars, holidays or home renovations.
- How does a Home Equity Loan work at QTCU?
- A home equity loan is treated as separate to your home loan, i.e. separate repayments, interest rate and term. The loan is secured against your owner-occupied residential property. Alternatively, you can opt for a home equity overdraft which can be attached to your current account.
- How much can I borrow?
- QTCU will lend up to 80% (without Mortgage Insurance) of your loan to valuation ratio. Therefore, you must have at least 20% equity in your home before you can consider a home equity loan. The maximum term for your home equity loan is 20 years.
- What are the benefits of Home Equity loans?
- A home equity loan allows you to borrow money for personal items at a variable interest rate that is much lower than a personal loan. However, because a home equity loan is separate from your home loan, the term is shorter so you'll pay off the purchased item quicker and pay less interest over the period of the loan.
- Do I need an existing QTCU home loan?
- No. Home Equity loans are available to anyone who has a property that can be used as security, including those who own their own home outright.
- Will this loan suit me?
- If you don't mind co-ordinating two loans simultaneously, the Home Equity loan could provide you with some definite advantages. If you've paid a substantial amount off your home, or started with a large deposit, a Home Equity loan can prove cheaper than using credit cards or personal loans for purchases such as cars or holidays.
A Product Disclosure Statement (PDS) is available for this product and you should read the PDS before making any decisions about the product. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances.
