How equity works
Equity is your property's value minus what you owe. Lenders usually let you borrow against part of it, often up to 80% of the property's value less your existing loan. That usable equity can become the deposit for your next purchase.
A home worth $1,000,000 with a $500,000 loan has $500,000 of equity. At an 80% limit, usable equity is $800,000 minus $500,000, which is $300,000. Illustrative only, not a forecast or recommendation.
How we help
- 01Confirm the numbers
A licensed broker orders a valuation and confirms usable equity and borrowing capacity.
- 02Structure it cleanly
We encourage separate loans rather than cross-collateralised ones, so each property stays flexible.
- 03Choose the purchase
The property must justify the extra debt, assessed on our 24 metrics.
- 04Leave a buffer
We plan for rate rises and vacancy, so your home is never stretched.
Common questions
Is using equity risky?
It increases your total debt, so it needs a plan and a buffer. Used carefully, it is how most portfolios grow.
How do I find out my equity?
A broker can order a lender valuation and calculate your usable equity.
Do I need cash as well?
Often some, for purchase costs, though equity can sometimes cover these too.
Related
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.