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—your home's market value minus the loan amount—for various financial goals. The portion you can borrow is called usable equity, which is the amount above the 20% you must retain due to LVR restrictions.
This can be used as a deposit for a second property, to fund renovations, or to help your kids buy a home. Since this increases your debt, it's best to use it for appreciating assets. 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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