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If you have already paid off some of your home, you would have equity. Equity is the difference between the current value of your property and the amount you owe the lender, and most lenders will allow you to borrow up to about 80% of the loan-to-value ratio (LVR) of your available equity.
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Real estate agents, your own desires, and some unscrupulous mortgage lenders may try to tempt you into buying a more expensive home than.
Buying a home with one’s own money is the right approach but when funds are scarce, one has to resort to getting it financed through a home loan. Most home loans require a down payment of about 20.
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