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 home equity—your property's value minus the loan amount—for various financial goals. Your usable equity is the amount you can borrow, which is typically any equity 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 family buy a home. Since this increases your debt, it's crucial to assess affordability. Speak with a mortgage broker to get started.
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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