Buying guide
Guide: using equity to buy a second property, renovate, or invest
Do you know how much equity you have?
AI summary
Homeowners can leverage their home equity—the property's value minus the loan amount—for various financial goals. Your usable equity is the portion you can borrow above the 20% minimum required by LVR restrictions.
This can be used for:
- A deposit on a second property or bach
- Renovations or building a new home
- Helping children buy their first home
Unlocking equity means increasing your debt, so ensure you can afford the repayments. Speak to a mortgage broker to explore your options.
How much equity is in my house?
Equity = House market value - Home loan amount
Useable equity = Equity - 20% of home value
If you've owned your house for a while you might be surprised what you can borrow.
Can you use equity as a house deposit?
What else can I do with my equity?
Building a home
Helping your kids buy a home
It may even be possible to build a new home using equity from your existing home.
Renovating or extending
Getting cash out
How to get started
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