Equity loans
If you have large equity in your home (at least 20%) or other property, this can often be used for other investment, debt consolidation or business purposes. Loans may be used to pay the Australian Taxation Office (ATO) and other pressing debts, including Second Mortgages and Caveat loans.
Lending criteria for equity loans
The criteria, restrictions and application processes on equity loans will vary between lenders. We’re familiar with the application policies from a large range of lenders and are advised on any changes, so we can always offer the most up to date advice.
Separating personal debt from investments or businesses
Loans can often be split into two or more sub-accounts to keep personal debt separated from investment or business related debt. This can be useful as debt related to business purposes can usually be claimed as a tax deduction against income. It is the purpose of the loan that is important, not the security. This means borrowing against your family home can still be deductible for you if it is used for business or investment purposes.
To confirm that this is applicable to your own personal situation, please seek independent advice from your own accountant or tax advisor.
More information
You may also be interested to learn more about:
Applying for a loan
Ready to get started? Get in touch with Philip Pay on 0439 400 497 or email to find out how Finance Consulting Group can support your loan application.
