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
Historic home saved from demolition and turned into $6m waterfront paradise
A rescued Remuera villa is now a $6m-plus Mahurangi Harbour retreat with rich history and waterfront living.
.jpg)
Spotlight on Canterbury, local property market insights
Trade Me data shows Canterbury defying the property cooldown, with high demand for big homes and great townhouse deals.
Search
Other articles you might like
