At Fidelis Financial, our mission is to empower our clients with financial knowledge and options that can improve their lives. One such option we offer is equity release, also known as "top up" or "cash out." 

Understanding Equity Release

Equity release is a versatile financial solution that grants homeowners access to the equity they've accumulated in their property over time. Equity represents the difference between your property's current market value and the outstanding balance on your home loan. As you make mortgage payments and witness the appreciation of your property's value, your equity grows.

Exploring the Uses of Equity Release

Equity release offers you a source of funds that can serve various purposes, improving your financial situation or helping you achieve specific goals. However, it's crucial to understand that you won't be able to access the entire equity in your home. The amount you can access depends on the intended use of the funds.

For instance, if you plan to withdraw funds from your primary residence to purchase an investment property, you can typically access up to a 90% Loan-to-Value Ratio (LVR), which includes any applicable Lenders Mortgage Insurance (LMI). Following this transaction, your home will have two portions: one representing the amount owed for your primary residence (personal debt) and the other indicating the cash-out amount used to acquire the investment property (investment debt).


Common Applications of Equity Release

Home Improvements: Many homeowners opt to use their released equity to finance home renovations or upgrades. Whether you're planning a kitchen makeover, a bathroom renovation, or expanding your living space, equity release can facilitate investments in your property's value and comfort.

Debt Consolidation: If you carry high-interest debts, such as credit card balances or personal loans, equity release offers a means to consolidate and repay these debts. This can result in reduced overall interest payments and simplified financial management.

Investment Opportunities: Some clients leverage their released equity to seize promising investment opportunities. This might entail acquiring additional properties, launching new business ventures, or diversifying their investment portfolio through stocks and bonds.

Equity release is a flexible financial solution that enables homeowners to access the equity they've accumulated in their property. Whether you're looking to enhance your home, consolidate debts, invest, fund education, or secure your retirement, equity release can provide the necessary financial resources. It's essential to understand the limitations on how much equity you can access based on your purpose and to seek professional guidance to ensure that equity release aligns with your financial objectives. At Fidelis Financial, we are dedicated to providing expert advice and support throughout your equity release journey, helping you maximise the potential of your property's equity.