Home equity is the difference between the value of your property on the market today and your outstanding bond payment.
Example:
Value of property: R750 000
Outstanding bond: R600 000
Home equity = R750 000 - R600 000 = R150 000
This equity canbe released by taking out a second bond on your home and used for various purposes like investing, renovating your home or consolidating debt in order to bring your interest payments down.
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