Where to start?
Check Your Equity
If your current property’s gone up in value, you might have usable equity. Lenders usually let you access up to 80% of your property’s value, minus what you still owe.
Estimate Your Usable Equity
Example: If your home’s worth $800k and your loan is $500k, you could potentially use up to $140k equity for the next deposit. Check out an equity calculator to see how much you could have.
Understand Loan-to-Value Ratio (LVR)
Your LVR shows how much you’re borrowing against the property value. Staying under 80% LVR helps avoid Lender’s Mortgage Insurance (LMI) and gives you better rates.
Get Clear on Your Borrowing Power
Even with equity, you still need to show you can afford the repayments (including both loans). Lenders look at your income, debts, rental income, and living expenses.
Talk to Your Broker and Accountant
A broker can help structure your loans smartly. An accountant can advise on tax, gearing, and ownership structure (personal, trust, etc.).
Review Finances and the Investment
Reduce debt and credit limits to boost borrowing power. Also research rental yield, vacancy rates, and growth. A buyer’s agent may help source solid investments.
Your equity, made simple.
Property Details
Your Available Equity
Equity Breakdown
Usable Equity
Speak to the team to find the best loan for you
Disclaimer: We’ve done our best to make this calculator is accurate, but the results are just a guide. It’s not a quote or a loan pre-approval. Calculation is based on (property value x .80 – loan amount). This represents the available equity you could potentially cash out for other use or leverage for other purchases. If you want to know more, feel free to get in touch!
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Understand loan structures.
About This Structure
Overview
Disclaimer: Please note, the above loan structures search is for general information purposes only. Structures are dependent on your unique situation and an assessment by a qualified mortgage broker must be done to confirm your eligibility.
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Frequently Asked Questions
How can I pay a deposit with no savings?
Depending on how much equity you have in your current home, you could leverage this to borrow 100% plus costs of your new purchase. The deposit is then paid via use of a deposit bond. A deposit bond is basically an IOU that says you are good for the money at settlement. There are several groups who provide deposit bonds and the fees mean that the upfront cost out of pocket is less than paying a traditional 10% deposit. This can also work if you have the equity, but don’t want to lose access to your savings.
If I use equity to buy an investment, do I have to change lenders?
You don’t necessarily need to change lenders to use the equity in your current home, however, it may be worthwhile. With different policies you can access when buying an investment property as well as different interest rates, it could save you thousands to switch at the same time.
Are there any fees or costs when refinancing?
Refinancing may involve exit fees from your current lender, application fees, valuation fees, and settlement costs with the new lender.
It’s important to compare these costs against potential savings to ensure refinancing is worthwhile.
Can I cash out equity for other investments?
Yes. Most lender’s let you cash out up to 80% of your properties valuation amount. You can then use this to fund contributions towards a new purchase or for other things such as investment in shares, home improvements amongst other things.
How do I choose the best refinancing option?
Look at interest rates, loan features, flexibility, fees, and customer service when choosing a new loan.
A broker can help compare multiple lenders and products, showing which option aligns best with your financial goals.