Refinancing

[bubfee]

Hello :wave:

There was a post similar to mine but not quite the same. We bought our house 2 years ago. Since then we think it has gone up in value by about a third - judging by auctions of very similar houses in our area. We are looking at trying to pay off a debt and I was wondering if we would be able to access the money in our house if it has increased in value? Hope this makes sense....

[andie_pandie]

Hi Bubfee, if the house has gone up in value then you can look at adding more onto your loan depending on the Loan to Value Ratio (otherwise known as LVR).

Now there are some things to consider, if the loan is currently fixed then you cannot add directly on, if it is variable then depending on your bank you may be able to add directly onto the current debt, or the bank may require the variable to be paid out then redone at the new amount.

Another option is also to look at refinancing completely to another bank as long as it is in your best interest, ie a cheaper interest rate, and as long as you do not have much of a payout figure.

If you need any further assistance you are more than welcome to PM me and I check criteria etc.:flowerz: