Home equity may contribute to an investment deposit and costs, but usable equity and borrowing capacity are separate tests.
Available versus usable equity
Available equity is the property value minus debt. Usable equity is the portion a lender may allow you to access after applying an acceptable loan-to-value ratio and other policy.
Serviceability still applies
Even with strong equity, the additional loan and new investment debt must pass income, expense and assessment-rate requirements.
Keep loan purposes clear
Separate facilities can help track investment and private purposes. Seek tax advice before drawing or mixing funds.
Allow for valuation risk
A lender valuation can differ from an agent appraisal or expected market value, changing the available amount.
Common questions
Can I use equity without selling my home?+
Potentially, through additional secured borrowing subject to valuation, serviceability, purpose and policy.
Is equity the same as cash?+
No. Accessing equity creates additional debt and repayments.
This guide does not consider your objectives, financial situation or needs. Lending policies, government programs and thresholds can change. Obtain current credit, legal, tax or financial advice as appropriate.