Now might be a great time to assess the equity in your home
- BankVic recently helped a Police Officer upgrade to new home
- Has your equity increased and opened up some options for you?
- Find a lender who understands police
2021 has seen the Victorian property market surge and interest rates drop to an all-time low. If you’ve been paying off your home loan for a while, now might be a great time to find out how much equity you have in your home. This will help you assess your goals for the future and see if your current home loan still suits your needs.
How one Police Officer used his equity to buy a bigger home
BankVic recently helped a Victoria Police Officer of more than 20 years and his partner upgrade to a new home. The couple who banked with a major bank all their lives turned to BankVic when they needed a home loan pre-approval before buying their new home.
“We were able to help them work out the equity they had in their existing home and determine their buying power. We provided them with a pre-approval loan very quickly so they could sort out their next steps.” Mobile lending manager Paul Meliak says.
“Not every bank understands the nature of police work. At BankVic we provide home loans for police every day so we understand how police salaries are structured, which makes the application process a lot easier for police. It also means that we can move things quickly through the loan process, from application right through until settlement,” explains Paul.
“The couple had just had a baby so the last thing they needed was the unnecessary stress of a complicated loan application process. We were able to make it easy for them.” Paul says.
Reviewing your current situation
With property prices increasing, the good news is that your equity may have also increased, especially if you’ve been paying off your home for a while. This could provide some options for you to help fund a renovation of your existing space, buy a bigger home or invest in property.
At the same time, you might find now is a good time to refinance. With interest rates so low you might be able to get a better deal on your home loan and save on your repayments.
“We work with our police members to understand their goals and help them find solutions at different points in their life – whether they’re a Police Recruit looking to buy their first home or someone with 10 years of service protecting us and looking to use the equity in their home to upgrade”. Paul says.
Find a lender who understands police
If you do have a new home in mind, you want to find a lender who understands the nuances that come with police life – overtime, penalty pay, fluctuating wages and not to mention shift work.
While some lenders consider only a portion of your overtime when assessing your borrowing capacity, at BankVic we consider up to 100% – increasing your borrowing power. Read more at Police, put your overtime into overdrive with these 4 tips
If you’re looking to buy a bigger, better home you will be pleased to know that at BankVic, Police members only require a 10% deposit to avoid lenders mortgage insurance (LMI) – a once-off expensive payment that protects the lender if you can’t make your repayments. Many lenders require borrowers to have at least a 20% deposit to avoid LMI.
BankVic is proud to serve Victorians working in policing, emergency services, and health.