Buying guide
Guide: using equity to buy a second property, renovate, or invest
Do you know how much equity you have?
AI summary
As a homeowner, you can leverage your usable equity—the value above the required 20% minimum—to fund major goals without a cash deposit. This powerful financial tool can be used for various purposes.
Common strategies include:
- Securing a deposit for a second property or bach
- Funding renovations that add value, such as adding a bedroom or bathroom
- Investing in a business or helping family buy a home
Unlocking equity means increasing your debt, so carefully consider the higher repayments and consult a mortgage broker.
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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