The answer is…YES you can – all subject to credit approval. We helped a client do just that. Their lender had been guilty of rate creep (as they all are) and the lender we had originally placed them with was no longer competitive in the market. We were able to source a lender with a lower interest rate but also allow them some extra cash to purchase a new car.

The benefits of using the equity in your home to purchase a new car usually are…a lower interest rate and a longer loan term, which means lower monthly repayments. However, it is important to note that this method ‘does’ eat into the equity in your home and if you leave the loan for 30 years you can end up paying much more interest. Hence we encourage you to look at splitting your home loan in two or more loans so you can easily keep track of the loan repayments on the extra funds you took out for a car anything else for that matter.