Can I Use the Equity in My Home as a Deposit for an Investment Property Without Touching My Savings?
The deposit for your investment property may already be sitting in your current one. The question is whether there’s enough accessible equity — and that depends on your property’s current value and your loan balance.
Some homeowners may be able to access equity in their existing property to assist with a future purchase. Equity is generally the difference between the property’s value and the outstanding loan balance. However, the amount that may be available to borrow will depend on lender policies, serviceability assessments and the property’s valuation.
Many lenders allow borrowing up to around 80% of a property’s value without lenders mortgage insurance, subject to their lending criteria. One way equity may be accessed is through refinancing an existing loan or increasing the current loan limit, subject to lender approval. These funds may then be used towards another property purchase.
Some borrowers choose to structure loans separately rather than cross-collateralising properties, as it can provide flexibility when refinancing or selling a property. Borrowers should seek advice from a qualified tax professional regarding any tax implications.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only and does not constitute financial advice. Using equity carries risk. Speak with a licensed mortgage broker and financial adviser before acting. All loans are subject to lender approval.
Sources: RBA, Financial Stability Review 2024; APRA Quarterly Property Exposures 2024; CoreLogic, Home Value Index 2025; ATO, Investment Property Tax Guidance.
