You can access funds from your existing home loan in different ways. Your decision would depend on your personal circumstances and financial goals, but here are the three ways in which you could use your bond.
A further advance, also known as a further loan, is an additional amount, over and above the amount you originally registered when taking out your home loan. This can be accessed if the value of your property has increased.
If the value hasn’t increased, but you’re planning in increasing it, you may then apply for further advance building loan.
Readvance means accessing the money you have already paid into your home loan account since registration.
This is a facility that allows you to access any surplus funds that have accumulated in your home loan account by you
It’s helpful to think of your home loan account as a regular bank account and good idea not to close it once your bond is paid off. It could be worth keeping open for the purpose of accessing funds again in future.
For example, if you wanted to buy property again, you could access funds on the existing bond or property, to help you pay a deposit or perhaps finance your new purchase. You should just let the bank know and remember that there may be a small admin fee involved, which differs between banks.
There are many things to look at when comparing home loans, but rest assured that your bond originator will help you better understand your options. Give yourself with a choice between multiple packages by applying for a home loan with Phoenix Bonds. We submit your application to all the most competitive banks, allowing you to compare the factors above and secure the best possible home loan deal.
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