How does equity work when buying a second home?
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How do you use the equity in your home to buy an investment property? It’s actually simpler than most people think. If your home has grown in value, you may be able to tap into that equity (the difference between what your home is worth and what you owe) to help fund your next purchase. Here’s how it works: 1- Get a valuation. The bank updates your property value. 2 - Calculate usable equity. Usually up to 80% of the value minus your current loan. 3 - Access the funds. Through a loan increase or
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