Gaining the equity advantage
Unlocking equity gives home owners the opportunity to improve their lifestyle, now and for the future. Learn how one family accessed their equity with ANZ to realise different dreams.
When Jeremy Sneddon and wife Marina approached ANZ about borrowing to invest, they were looking for a flexible way to access funds.
ANZ recommended the couple consider an Equity Manager loan, a line of credit secured by the equity in their home. ANZ Equity Manager offers the functionality of a transaction loan – but with the low interest rate of a home loan.
ANZ Account Manager Vince Sercia explains:
"ANZ Equity Manager is a terrific vehicle for clients wanting to tap into equity that they’ve built up in their property in order to assist in creating wealth, whether by gearing into investments or into property."
"It offers very flexible and convenient ways of accessing the funds, and this works well for people who buy and sell and transact all the time."
Building future wealth now
This flexibililty and convenience works well for Mr and Mrs Sneddon, who use their Equity Manager loan to buy and sell shares.
Mr Sneddon explains:
"The loan is particularly useful for my share trading, because it features a cheque option, and funds are available at short notice," says Mr Sneddon.
"It's also connected to online banking so I can easily track all of my transactions. And at the end of each financial year we get a financial summary that makes our tax return process simple."
The couple has been able to draw funds when needed up to a pre-approved limit, which was based on the equity they had built up in their home over time.
Mr Sneddon explains:
"ANZ sends out a valuer to value your house and, provided you have the ability to meet the repayments, they'll calculate a limit based on the value of your house, minus any debts you have," says Mr Sneddon.
The big advantage is that as you accumulate more equity you may be able to borrow more.* "I recently increased my limit which was really easy to do through my Account Manager Vince Sercia," says Mr Sneddon.
Mr Sercia explains:
"When Jeremy came to ask for an increase in his credit limit I was able to say yes because he had the capacity to meet higher repayments, and his home had increased in value - which meant he'd built up more equity."*
* Subject to ANZ's normal lending criteria.