Home Equity Loan Rates
Equity in your home refers to the amount you have left to pay on your home loan in relation to what your home is worth. This equity will be your profit if you decide to sell your home alternatively you can access the equity in your home loan with a home equity loan.
You can use the equity in your home loan for anything you wish, including financing renovations or to use towards a loan for an investment property. It is important to note though that you are using your home as security in doing so therefore jeopardising the security of your home.
Our table shows:
- the lender’s published rate
- the “comparison rate” – a government-specified “artificial” rate that takes into account both interest and the fees and charges you would pay on a $150,000 loan over 25 years
- “upfront fees”, including application fees, valuation charges, legal charges and other fees
- “ongoing fees” which are paid each month, quarter or year for the life of the loan
To determine the right loan, you must deal with more than just rates and fees. You must find out:
- Is this loan available to me?
- Does this loan come with the features I need?
- Can the lender deliver the level of service I need?
The rates and fees that apply at the start of a loan are also likely to change during the life of the loan.