Issue link: https://maltatoday.uberflip.com/i/1523401
36 | Architecture & Design F or most people, their home is the biggest and most valuable asset they will possess in their lifetime. A property does not just give you a roof over your head, it's also a great way to build and preserve the wealth you create during your working years. The only problem is that your home does not give you an income. This means that the monetary benefits of owning your home can only be enjoyed if you sell and move to a smaller home later in life or by your heirs who inherit it. However, one way to unlock some of the value of your property is a home equity loan. WHAT IS HOME EQUITY? Home equity is the value of your property minus what you have left to pay on your mortgage or any loans which are being secured by your property. The equity will improve either through rising property prices, which will increase the value of your property, or by paying off your existing loan. HOW DOES A HOME EQUITY LOAN WORK? If your home is worth €500,000 and there's still €200,000 outstanding on your home loan, that means you have up to €300,000 in equity. This amount will continue to change as you pay off your home loan and property prices fluctuate. But, providing you meet the relevant terms and conditions, a home equity loan will enable you to unlock that equity so that you can turn some of the value of your home into cash through which you can finance your specific needs. WHAT CAN YOU USE A HOME EQUITY LOAN FOR? The money you unlock through a home equity loan can be used for many different purposes. These could include upgrades to your property, covering study fees or the costs of a wedding, purchasing that holiday home abroad you have always dreamt of, or buying a boat. While a home equity loan does, of course, add to your total borrowings, it does provide a mechanism for your home to improve your cashflow and enable a better quality of life. CAN I AFFORD A HOME EQUITY LOAN? As with all loans, it is important to understand what the associated costs are. When calculating the loan, MeDirect's home loan specialists will carefully consider your income and other monthly commitments, as well as the equity of your home, when calculating the value of a home equity loan. WHERE CAN I FIND MORE INFORMATION? More information on MeDirect's home equity loans and all our other mortgage products is available at www. medirect.com.mt/borrow/. The website also provides a facility for you to book an appointment with one of our home loans specialists. Meetings can be arranged in person or online, depending on the customer's schedule and preferences. This is a marketing communication from MeDirect Bank (Malta) plc. MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank's lending criteria. Terms and conditions apply and are available on request. Your residential immovable property may be repossessed if you do not keep up with repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your residential immovable property. Make the Most of the Value of Your Property with a Home Equity Loan