Do you have concerns about how much money you can borrow based on the equity in your current home loan?
Most lenders will happily give you enough money to bring your LVR up to 80%. Once you borrow more than that, it gets a little more complicated and you may have to provide evidence of the ‘purpose of funds’.
What on earth does purpose of funds mean?
Basically, it’s the process you go through to convince a lender to release your equity. Each bank will have different policies to determine if you are eligible and withdrawing your funds may require you to take out lender’s mortgage insurance.
If you’d like to chat about what’s involved in the purpose of funds, let’s talk.
My Very Best To You Always,
