Buying guide
Guide: using equity to buy a second property, renovate, or invest
Do you know how much equity you have?
AI summary
This guide explains how homeowners can use their home equity for renovations, investments, or buying a second property. Equity is your home's market value minus your loan amount.
Usable equity is the portion you can borrow, typically the amount above the 20% you must retain due to LVR restrictions. This can be used for:
- A deposit for an investment property or bach
- Funding renovations or a new build
- Helping children buy their first home
Using equity increases your debt, so speak with a mortgage broker before proceeding.
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
Author
Discover More
In Auckland, this villa would set you back $2m - in this town, it’s less than $700k
This beautifully updated Blenheim villa has all the charm of Ponsonby – for under $700,000.
They rescued a fading coastal landmark. It’s now the suburb’s priciest home
A once-tired Piha property has become the suburb's most expensive home listing at $11 million.
Search
Other articles you might like
