Equity Withdrawal

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Equity Withdrawal

1. The act or practice of borrowing against the value of one's home. One may withdraw equity only if the value of the home exceeds the remaining mortgage (otherwise, the borrower has negative equity). One may make an equity withdrawal to fund home improvements, a new home, an education, or almost anything else. See also: Home equity loan.

2. The amount by which the sale price of real estate exceeds the amount the seller paid for it.
References in periodicals archive ?
Furthermore, the BSP's FDI data are presented in net terms (that is, equity capital placements less withdrawals), while the IPAs' FDI do not account for equity withdrawals.
equity capital placements less withdrawals), while the IPAs FDI do not account for equity withdrawals.
And third, relative to equity withdrawals, the rate of equity injections declined due to a fall in deposits from first-time buyers.
The reliance on home equity withdrawals to fuel current spending is over.
Housing equity withdrawals figures from the BoE provided a further sign of an economy turning down.
But, there was also a fall in mortgage equity withdrawals.
There's also been a sharp decline in equity withdrawals as consumers struggle with the housing downturn.
In the Netherlands several steps have been taken to limit mortgage interest deductibility when owner-occupiers withdraw housing equity: since 1997, they have not been permitted to claim interest deductions on equity withdrawals from their existing residence except for home improvements; since 2001, the period during which mortgage interest payments could be deducted from personal income has been limited to 30 years and, more importantly, a cut in tax rates has effectively lowered tax subsidies for high income earners by about 20%; and, from the beginning of 2004, owner occupiers can only deduct interest on that part of the mortgage that is equal to the home's value minus the equity withdrawal from the former home.
Moreover, a substantial rise in bankruptcies would require a quite-significant overall reduction in the national housing price level because the vast majority of homeowners have built up substantial equity in their homes despite large home equity withdrawals in recent years financed by the mortgage market.
tax reductions and refunds on consumption spending, the additional cash that consumers obtained from home equity withdrawals in the early part of the year, the continuation of large financial incentives to purchase automobiles, and so on.