Home Equity Mortgages and Loans in Australia

Home Loan Club helps you use the equity in your home

A home equity mortgage is a loan that uses your home as security. Your home equity is the part of your home that you actually own and this is the guarantee for your loan.

Your home equity is calculated by taking the current value of your home and subtracting your mortgage. For example, if your home is worth $150,000 and you have a $100,000 mortgage, you have $50,000 of equity in your home. A home equity loan allows you to borrow money using your equity of $50,000 as collateral for the loan.

A home equity mortgage, often called a 2nd mortgage, reduces your equity or ownership in your home. Your home guarantees your loan if you default on the payments. A lower interest rate and tax deductions are the two major advantages home equity loans have over other types of debt.

Since a home equity loan is secured by your home, it poses less risk to a lender than does a non-secured personal loan or credit cards - this lower risk is passed on to you in the form of a lower interest rate.

The second major advantage is that a home equity loan can be tax deductible. Credit cards and other types of non-secured loans do not have this tax benefit. We can show you the tax deductibility benefits that may be available to you.

A home equity loan can be used for anything from paying off high-interest credit card debt, to buying a car to home improvements. The best uses of a home equity loan are to improve your home, your financial situation, or your future and these include home improvement, debt consolidation, and education.

Your money is invested in something that grows. Poor uses of a home equity loan are to buy a car or to pay for living expenses - the money is spent on something that depreciates or does not create an asset.

To unlock the equity in your home, please use our free no obligation Loan Enquiry Form