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Can I use the equity in my current home as a deposit?

Yes. Equity is a powerful tool that can set you on the road to building a profitable investment property portfolio.

You can use the equity in your home as an investment property deposit and if you have enough equity built up, you can borrow 80% of the property’s value without having to use your own cash.

How equity is calculated

Your accessible equity is the difference between your home’s current value and how much you still owe on your home loan. So, if you’ve lived in your home for five years or more, you may have accumulated a reasonable amount of accessible equity.

Keep in mind though, that most lenders may only lend up to 80% of your home’s current value minus your current home loan limit. This is known as your usable equity, which is quite a bit less than your accessible equity. It can still, however, be a significant amount for an investment property deposit or any other acceptable use you may have for it, such as renovating your home, investing in shares or managed funds, repaying other loans (e.g., credit cards, personal loans) or improving your lifestyle with a holiday or new car.

Tips when buying an investment property

All investments carry some level of risk, so to reduce your exposure when accessing your equity you could: 

  • Keep some of your equity for emergencies, instead of using it all to invest in property.
  • Consider repaying your home loan as quickly as you can.
  • Learn more about property investing so you can make educated choices.

This information is of a general nature only and does not consider your personal objectives, financial situation, or particular needs. Remember, it's important to get professional financial advice to fully understand your options.

Still have questions about using your equity? Give us a call on 1300 992 700 or send an email to

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