What is equity
Equity is the difference between a property’s value and the amount you owe on it. If you sold your property and repaid your mortgage, your equity would be the amount left over. For example if you have a house worth $400,000 with a $100,000 mortgage, you have $300,000 of equity in the property.
Using the equity in your home for an investment
You can use that equity to purchase an investment property, rather than having to provide the deposit from your own money. For example, if you have $200,000 of equity in your existing home, and you want buy an investment property worth $160,000; you may be able to use your equity to get a mortgage for the entire purchase price, without the Bank needing to take security over the investment property.
If the purchase price of the investment property is more than the equity in your home, you can still apply for a mortgage. However, the Bank will need to take security over both your home and the investment property.
More information
For more information on how ANZ can help you invest in property
Contact a Mobile Mortgage Manager
Call 0800 269 4663
Visit your nearest ANZ branch
For the ANZ First Home package, you need an ANZ everyday account with your salary, wages or business income direct credited and an ANZ Serious Saver account. ANZ lending criteria, terms and conditions and fees apply to all loans.
A copy of the Reserve Bank Disclosure Statement published by ANZ Bank New Zealand Limited may be obtained on request from any ANZ branch.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.
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