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 home equity for renovations, investments, or buying a second property. Your usable equity is the amount you can borrow above the 20% of your home's value that you must retain due to LVR restrictions.
This can serve as a deposit for a bach or investment property, often without needing cash. Since unlocking equity increases your debt, it's wise to use it for appreciating assets and consult a mortgage broker to assess your options.
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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