Skip to content

How does a home equity loan work?

Home equity is the difference between what your home is worth and what you owe on your home loan. A lot of people may be unaware of how a home loan works when it comes to equity.

Basically, your equity increases if the value of the property does. If you owe R1 000 000 on your bond and the property is worth R1 200 000, you have equity of R200 000.

You can apply for a home equity loan in the same way you apply for a home loan. The higher your credit score, the higher your chance of approval and the lower your interest rates on the home equity loan.

Get a free home loan comparison

Multiple quotes from the big banks to compare.

APPLY

Ranked #1 in Banking on Hellopeter

hello-peter
Star Rating

Average rating of 4.86 from over 4 550 reviews

Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Star Ratings

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Star Ratings

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M

Star Ratings