{"id":420,"date":"2021-08-23T07:42:36","date_gmt":"2021-08-23T07:42:36","guid":{"rendered":"http:\/\/blog.effi.com.au\/blogs\/?p=420"},"modified":"2021-08-23T07:42:36","modified_gmt":"2021-08-23T07:42:36","slug":"borrowers-use-increased-home-equity-to-get-some-extra-cash","status":"publish","type":"post","link":"http:\/\/13.210.238.202\/blogs\/2021\/08\/23\/borrowers-use-increased-home-equity-to-get-some-extra-cash\/","title":{"rendered":"Borrowers use increased home equity to get some extra cash"},"content":{"rendered":"

Apparently, home-owners have topped up their mortgages by nearly $93 billion in the last year, given the rising property values and increased equity. Most lenders have also replaced traditional products such as lines of credit with top-up loans or supplementary loans using property equity as security.\u00a0<\/span><\/p>\n

Just a quick recap, equity is the difference between the market value of a property and the amount you still owe on your home loan. And home loan top-up is a way to borrow extra money against your current home to pay for renovating, a car, extra cash or whatever you choose. When you increase the amount you owe on your existing home loan, your repayments will increase.\u00a0<\/span><\/p>\n

Do your homework<\/b><\/h1>\n

So you\u2019re pumped to get the sweet cash, which is totally understandable with the soaring property prices and your boosted owner equity. But when it comes to debt, you need to think carefully and be prepared. You don\u2019t want to see yourself trapped with nowhere else to move…eek.\u00a0<\/span><\/p>\n

Many people are not aware of the potential consequences of loading up on debt and not making those extra repayments quickly. Here are a few things to consider:<\/span><\/p>\n