This short 5 minute video explains how to maximise your borrowable equity and why it’s important to do so. I explain what is borrowable equity, how it’s determined, 3 reasons why it’s important to proactively maximise it and how to maximise it.
This is an important action in all environments. However, I suspect that it will become even more important over the coming months and years as credit is predicted to tighten considerably. You can access our borrowable equity assessment worksheet (below the video) to analyse your own situation and work out whether you should take any action. Of course, if you have any questions, don’t hesitate to reach out to us.
As discussed in the video, three reasons why it is important to consider maximising your borrowable equity include:
(1) To fund future investment(s) and/or other uses such as home upgrade, renovation, etc.
(2) To maximise your loan buffers in case of any unforeseen changes or expenses – the more access to credit you have, the lower your overall risk as you have adequate financial resources to weather most storms.
(3) In case your borrowing capacity changes in the future e.g. start a family and go down to one income, change employment, move overseas, property values decrease, credit policy changes, etc. We never know what is around the corner.
Download: Borrowable equity worksheet
Complete the form below to get instantaneous access to our worksheet. This worksheet will help you estimate how much borrowable equity you may have and whether you should consider increasing your credit limits now.
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