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New to the Market - Shared Equity!
What is Shared Equity?
Shared Equity is a lending scheme that allows the borrower to borrow beyond their normal borrowing capacity. This is achieved using an Equity Partner who invests a large portion of money for the deposit of the loan.
Any catches?
The catch with these loans is that when the house is sold the Equity Partner is entitled up to 50% of the equity gained from capital growth in that time. Be careful with these because you may end up with little profit depending on when you sell, and how much the house has risen by that time.
Who does this benefit?
Shared Equity is designed for potential borrowers on a low to medium income who are struggling to find something decent in their price bracket. This is something that may be particularly useful for First Home Buyers, as it provides freedom to buy in a better suburb or higher price range.
How do I apply?
This is a new idea to the lending world and very few lenders are offering this product. However, you will find that over the next couple of years it will really come to the forefront.
So look out for this one and contact Lending Hand Finance to apply for a Shared Equity Loan.
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