Can Your Home Equity Be Your Business Fund?

If you are seeking innovative ways to fund your ventures, have you thought about leveraging the equity in your home? This article explores the concept of using home equity as a source of funding for your business, explaining how it works and why it might be a viable option for you.

How does home equity work?

Home equity is the value that you own in your property, which is the difference between its current market value and the amount you owe on your mortgage. To put it simply, if your home is worth $500,000, and you owe $200,000 on your mortgage, your home equity stands at $300,000. This equity is essentially your ownership stake in your property.

Why opt for home equity loans for business funding

You can use home equity loans for various purposes. For businesses, home equity loans offer a straightforward and accessible way to fund your entrepreneurial dreams. Here are some reasons why leveraging your home equity might be the ideal solution for your business’s financial needs:

Access to a potent financial resource

When considering funding options for your business, it’s crucial to recognise that home equity can be a powerful financial resource at your disposal. Unlike traditional loans, a home equity loan allows you to tap into the value you’ve built in your property. This financial flexibility can be a game-changer, especially if you are looking for quick and hassle-free access to capital.

Simple application process and easy qualification

Applying for a home equity loan is straightforward and hassle-free. We’ve streamlined the process to make it as simple as possible, ensuring you can focus on what matters most – your business. What’s more, home equity loans are relatively easy to qualify for, which makes them an accessible funding option for many homeowners.

High loan limits

Home equity loans can provide substantial capital for your business needs. The loan limit, however, depends on the amount of equity you’ve built in your home. The more equity you have, the higher the potential loan limit. This provides a significant financial boost to your business aspirations.

Lower interest rates

Home equity loans typically come with lower interest rates compared to some other forms of financing. This is because your property serves as collateral and reduces the risk for lenders. Lower interest rates mean reduced long-term costs for your business, which is a significant advantage when managing your finances.

Flexible use of funds

Whether you’re starting a new venture, expanding an existing business or investing in opportunities, home equity loans offer the flexibility to use the funds as you see fit. There are no strict restrictions on how you can employ the capital, so it gives you the freedom to address your specific business needs.

Quick access to cash

One of the main advantages of using home equity for business funding is the speed at which you can access the funds. Traditional loan applications can be time-consuming and laden with paperwork. In contrast, home equity loans typically have a faster approval process, and the funds can be disbursed within days.

Tax benefits

In Australia, there are potential tax advantages to using your home equity for business purposes. Interest paid on home equity loans used for business may be tax-deductible. This provides you with a financial incentive that can further enhance your business’s financial health.

No credit check or income assessment

At Mango Mortgages, we understand that traditional lenders often impose stringent credit checks and income assessments. With our home equity loan options, we offer funding solutions without these cumbersome requirements. We want to make it more accessible for business owners, especially those who may not meet the strict criteria of traditional lenders.

Key takeaway

Your home equity can be your business fund. It’s a valuable asset that you’ve built over the years, and by using it strategically, you can unlock the potential for business growth and financial success.

At Mango Mortgages, we specialise in providing home equity loans tailored to your unique circumstances and objectives. Our loan terms range from 2 to 24+ months, and we proudly serve customers Australia-wide.

We offer a transparent and straightforward process, so you are fully aware of our fees, charges, interest rates and any additional costs related to late repayments. With quick access to funds, typically within 3 to 5 days from application and the potential for tax benefits, using your home equity to fund your business is an option worth considering.

Let Mango Mortgages help you turn your home equity into a valuable business resource. Apply online here.

Mango Credit

Yanis Derums is the Founder and Director of Mango Credit– a leading private lender specialising in bridging loans for personal use and business short term loans for commercial and/ or investment purposes. Yanis has extensive experience with financial analysis, credit assessment, product structuring, and general business management