How to Use Equity to Fund a Holiday or Investment

 

Your home isn’t just a place to live—it’s also a valuable financial asset. As property values rise and your mortgage balance decreases, you build equity. This equity can be accessed to fund a variety of goals, from a dream holiday to a new investment.

Equity is the difference between your home’s market value and the amount you still owe on your loan. For example, if your home is worth $800,000 and your mortgage is $500,000, you have $300,000 in equity. Lenders may allow you to borrow against a portion of this equity, depending on your financial situation.

Many homeowners use equity to renovate, invest in shares, or even purchase another property. Others choose to fund a once-in-a-lifetime holiday or help their children with education costs. The key is to use equity wisely and ensure it aligns with your long-term financial goals.

A broker can help you explore your options, calculate how much equity you can access, and guide you through the refinancing process if needed.