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The difference between the market value of a house and the amount still owed. As you continue to repay your home loan, your equity grows. Your equity will also increase if your house is re-appraised at a higher value. For example, if your house's purchase price was $180,000 and your have an outstanding mortgage of $110,000, your equity is $70,000. If the same house is re-appraised and gives a value of $200,000 - $20,000 more than the purchase price ¨C your equity is $90,000.
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