How can I use my current home's equity in the new home loan?

There are a few options available to you if you want to utilize the equity from your current home in a new home loan.

Firstly, you can choose to take out the equity from your existing home. This means that you would borrow against the value of your current property and use the funds as a down payment or towards the purchase of your new home. This option allows you to tap into the built-up equity in your home and use it to finance your new property.

Another option is to apply for a construction loan. With a construction loan, you can borrow funds to cover the costs of building a new home on your property or renovating an existing property. The amount you can borrow will depend on the projected value of the completed construction.

Lastly, you may also explore having the builder carry the building costs. This means that the builder would cover the upfront expenses associated with constructing your new home, and you would repay them either through an arrangement agreed upon with the builder or by including the costs into your new mortgage.

Ultimately, choosing the best option for utilizing your current home's equity in a new home loan will depend on your specific circumstances, financial goals, and preferences. It is recommended that you consult with a mortgage professional to discuss these options further and determine which approach is most suitable for your situation.