Best way to access equity for private use

Hi All,

My Dad has an IP. Loan amount is ~$140K, value would be ~$240k, so about $100k equity.

My Dad is pretty old school and was thinking about selling the property to access the equity. The purpose of the loan is to fix up his PPoR.

I'm wondering if anyone would be kind enough to suggest the "best way" for him to access this equity (rather than just selling).

Dad's 64, but not looking to retire just yet. He's only had the property for about 4 years (better late than never!).

I'm happy to provide more information if needed.

Just would really appreciate some help.

Many thanks,
SupaRex

 

Standard separate split for an equity release - very simple. Based on the figures he could access around 52k to bring the total LVR up to 80% and avoid paying any LMI costs.

Most lenders will be OK with his age, they may require an accelerated repayment term to make sure he doesn't have the debt into old age, but if he can afford it that's not necessarily a bad thing.

 

If the original loan relates to that property and the equity will be used to improve that house then all you have to do is increase the existing loan.

 

Hi Terry,

The new loan will be for a different property - Dad's PPoR.

I'm just looking at options for accessing the equity.

 

In that case it should be split. Ideally as an IO loan which can be paid directly back into the loan at settlement and then drawn down as needed.