Equity release loans and loan increases are both ways to tap into the equity in your property. While they share similarities, the key difference lies in how they are structured. At Intuitive Finance, we can guide you through which option best suits your financial situation, ensuring you make an informed choice.
What is the Difference Between
an Equity Release Loan and a Loan Increase?
An equity release loan allows you to access the equity in your property by applying for an entirely new home loan facility with its own terms, features, and interest rates. It is typically used when larger amounts are needed, and it requires you to set up a new loan structure.
In contrast, a loan increase or top-up loan involves borrowing more funds against your existing mortgage. Instead of applying for a new loan, the additional funds are simply added to your current home loan balance, making this option quicker and more streamlined.
ADVANTAGES
- Equity Release Loan: Provides access to larger amounts of equity and the option to restructure your home loan with new terms and features.
- Loan Increase: Faster process as it doesn’t require setting up a new loan; you simply add the extra funds to your current mortgage.
DISADVANTAGES
- Equity Release Loan: Requires a completely new loan setup with potentially new terms, interest rates, and fees.
- Loan Increase: You may be limited in the amount of equity you can access depending on your existing loan and lender’s policies.
What’s Involved in Obtaining an Equity Release Loan Through Intuitive Finance?
Initial Meeting
A 1-hour session to establish your financial and lifestyle goals, discuss the fact-finding document, and agree on a timeline for its return.
Fact Finding Submission
We will submit the completed fact-finding document.
Strategy Submission
Within 5 days of receiving the completed fact-finding, a written strategy is submitted to you.
Document Lodgement
Within 2 days of agreeing to proceed, documents are lodged with the institution.
Conditional Approval
Expect conditional approval within 1 to 3 days of lodgement.
Unconditional Approval
Expect unconditional (full) approval within 2 to 4 days after conditional approval.
Loan Documents Arrival
Expect loan documents to arrive within 2 to 5 days after unconditional approval.
Loan Settlement
Expect loan settlement within 3 to 5 days after submitting the signed loan documents.
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