5 Real Benefits of Owning A Home
Buying a house is not only exciting, but it can be one of life’s biggest achievements. While it may sometimes seem challenging, there are many benefits that come with owning your own property.
In the short-term, renting can be a great way to decide where you want to live and can help you save up for your home loan deposit. But here are four ways that owning your own home can create value for you over time.
1. Building Equity
Your equity is the amount of the property you own. Equity can increase naturally when you pay down your mortgage or when the market value of your home appreciates. It can also be given a boost by making extra payments on your mortgage. Here’s a guide on how to calculate and access your equity.
Equity can be accessed by redrawing on your loan (if you’ve made additional payments) or through refinancing for cash out. These funds can then be used to renovate, buy a new car, or even as the deposit on another property.
2. Living Stability and Security
3. Create Your Dream Home
4. Save Money
It might not feel like it, but your mortgage repayments could save you money. Many repayments include principal as well as interest, which means you’re putting some money towards owning more of your home. While renting seems to be cheaper, you won’t get any of that value back in the future.
When you're deciding to rent or to buy a home, there's a lot to weigh up. You could start by finding out how much you could borrow using our home loan borrowing power tool in just minutes.
Want to find out where you stand? Calculate your Borrowing Power.
Need some help with your first home loan?
Whether you’re confused the purchase process, wondering what LMI or LVR mean, or are looking for help along the way, our resources are here to make sense of all that finance jargon.
You are protected by responsible lending laws. Because of these protections, the recommendations given to you about home loans are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed.
All loan applications are subject to the lender completing responsible lending checks and considering the borrower’s individual circumstances. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
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