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
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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Easy as 1,2,3
What happens: Initial phone call to find out how we can help
What you need: Your contact information and basic details
What happens: Document collection and verification
What you need: ID, pay slips, bank statements, tax returns etc.
What happens: Application submission and eligibility review
What you need: Completed application and compliance forms
What happens: Purchase price is agreed and valuations are done
What you need: Reach out to a solicitor to help with contracts
What happens: Approval letters are issued, contracts are exchanged
What you need: Your deposit is normally paid at this stage
What happens: Document signing and execution
What you need: Witness signatures where applicable
What happens: Final fund transfer and settlement
What you need: Ensure remaining contribution is transferred
Reach out for a free chat!
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.