Buying guide
Guide: using equity to buy a second property, renovate, or invest
Do you know how much equity you have?
AI summary
As a homeowner, you can leverage your home equity (your home's market value minus your loan amount) for various purposes. Your usable equity is the amount you can borrow, typically anything above the 20% you must retain due to LVR restrictions.
Common uses include:
- A deposit for a second property or bach
- Renovations or extensions
- Helping family buy a home
Remember that using equity increases your borrowing, so it's crucial to assess affordability. To get started, speak with a mortgage broker or lender.
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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