Related Articles
VIEW ALL ARTICLES
Unlock the potential in your current properties to fund your next investment. Learn how refinancing and accessing equity can fast-track your portfolio growth.
Building a successful property portfolio requires strategic thinking and smart financial moves. Refinancing to unlock the equity in your existing property can be a game-changer. At DPN, our experienced mortgage brokers are ready to guide you through the process, helping you take the next step toward your investment goals.
Equity is the difference between the market value of your property and the balance of your outstanding mortgage. Over time, as property values rise and you pay down your loan, your equity grows. However, not all equity is immediately accessible. 'Usable equity' refers to the portion a lender is willing to let you borrow against, typically up to 80% of your property's value without requiring lenders mortgage insurance.
Refinancing involves replacing your existing mortgage with a new one, often with a different lender offering better terms. This process allows you to access the usable equity built up in your property. By unlocking these funds, you can provide a deposit for your next investment property, secure better interest rates, or improve your loan structure to align with your future plans.
While refinancing can be highly beneficial, it's important to consider associated costs such as break fees, valuation charges, and legal expenses. Additionally, increasing your borrowings can affect your overall borrowing capacity. Working with an experienced mortgage broker, like those at DPN, ensures you receive personalised advice, helping you balance opportunity with financial responsibility.
Refinancing and unlocking equity is a proven strategy to expand your investment portfolio. With the right guidance, it can open doors to new opportunities without needing to save an entirely new deposit. DPN's expert mortgage brokers are ready to help you navigate the process and achieve your property investment dreams. Contact us today to get started on your journey.
The information provided is general in nature and should not be taken as advice as it does not take into account your personal circumstances, needs or objectives. Individual lender criteria applies to the approval of credit products. Terms and Conditions and lending criteria apply and rates are subject to change.
.svg)
