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Unlock Your Home's Equity

Home Equity Loans and Lines of Credit in Australia

If you've been paying down your Australian home loan for several years, or property values have risen, you may be sitting on significant equity. A home equity loan or line of credit lets you access that equity for renovations, an investment deposit, debt consolidation, or any other worthwhile purpose.

Equity access is available as a lump sum loan or a revolving line of credit (also called a home equity line of credit or HELOC). Your broker will explain which structure suits your purpose and minimises total interest cost.

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Australian homeowners renovating using home equity loan

80%

Max LVR for equity access

$50K+

Typical minimum access

80+

Lenders compared

Variable

or Fixed rate options

Put your home's equity to work

Australians who have built equity in their property can access it for a wide range of purposes, often at significantly lower rates than personal loans or credit cards.

Fund renovations at home loan rates

Personal loan rates are usually well above home loan rates, so accessing equity can fund your kitchen, bathroom, extension or landscape project for far less interest. As an example, a $100,000 renovation funded at 7% rather than a personal loan at 12% saves about $5,000 a year in interest.

  • ✓ Rates far lower than personal or renovation loans
  • ✓ Funds released to your account as required
  • ✓ Redraw or line of credit, use what you need
Australian home renovation funded by home equity loan

Fund an investment property deposit

Using equity in your owner-occupied home as the deposit for an investment property is one of the most common wealth-building strategies in Australia. Done correctly, you can purchase an investment property with no cash savings, using your existing equity as the deposit security.

  • ✓ Access equity without selling your home
  • ✓ Use as deposit for investment purchase
  • ✓ Coordinate with your accountant on tax implications
Investment property purchased using home equity in Australia

How to access your equity

Free equity assessment, no credit check

Our brokers calculate your usable equity, compare lenders and structure the most cost-effective access to your funds, at no cost to you. Lenders pay our fee.

  • ✓Calculate usable equity at 80% LVR
  • ✓Lump sum loan or revolving line of credit options
  • ✓Compare 80+ lender equity products
  • ✓Variable and fixed rate options available
  • ✓Coordinate with your accountant for investment purposes
Calculate my equity, free

Types of home equity loans in Australia

There are four common ways to borrow against the equity in your home. The right one depends on what the money is for, how you want to draw it and whether your current lender is still competitive.

Loan top up

Increase the limit on your existing home loan with your current lender. Funds are paid to your account or set up as a separate split.

Best for: A defined one off cost, such as a renovation.

Watch for: Your lender may not offer the sharpest rate on the new amount.

Line of credit

The Australian version of the home equity line of credit (HELOC) used overseas. You receive an approved limit, draw on it as needed and pay interest only on what you use.

Best for: Staged projects or costs that arrive over time.

Watch for: The balance does not reduce unless you pay it down, so it needs discipline.

Cash out refinance

Move your home loan to a new lender and release equity at the same time.

Best for: Pairing equity access with a better rate or features.

Watch for: Valuation and discharge fees, and break costs if your current loan is fixed.

Separate investment split

Release equity into its own loan split to fund an investment property deposit, keeping investment borrowing separate from your home loan.

Best for: Buying an investment property without cash savings.

Watch for: Speak with your accountant about deductibility before you draw funds.

How much equity can you borrow against?

Most Australian lenders let you borrow up to 80% of your property's value without lenders mortgage insurance. Your usable equity is 80% of the value, less what you still owe.

Usable equity is the ceiling, not the approval. The lender also checks you can afford the higher repayments, and banks must test them at 3 percentage points above your actual rate under the APRA serviceability buffer.

Some lenders will go to 90% of the property's value, usually with lenders mortgage insurance or a higher rate.

Worked example

Property value
$850,000
80% of property value
$680,000
Less current loan balance
$420,000
Usable equity
$260,000

Illustration only. Lenders use their own valuation and assessment.

Costs and risks to weigh before you borrow

  • Rates can rise. The Reserve Bank has lifted the cash rate during 2026 and most equity loans are variable, so budget for higher repayments, not just today's.
  • Debt consolidation can cost more over time. Moving credit card or personal loan debt into your mortgage lowers the rate, but spreading it over 30 years can raise the total interest unless you repay it faster. When debt consolidation makes sense.
  • Your home is the security. An equity loan is secured against your property, just like your main mortgage.
  • Upfront costs. Expect a property valuation and possibly application, discharge or break fees, particularly when refinancing a fixed loan.
  • Tax depends on purpose. Interest on equity used to buy income producing investments may be deductible; for personal spending it generally is not. Confirm with your accountant.

How accessing your equity works

  1. 1

    Estimate your usable equity

    Start with a property value estimate and your current loan balance.

  2. 2

    Broker review

    We compare equity options across 80+ Australian lenders and recommend the structure that suits your purpose.

  3. 3

    Property valuation

    The lender orders a valuation to confirm what your home is worth today.

  4. 4

    Application and approval

    The lender assesses your income, expenses and credit history against the new loan amount.

  5. 5

    Funds released

    Most equity releases settle within 2 to 6 weeks of application.

General information only. It does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply.

Find out how much equity you can access

Use our tools to estimate your usable equity and compare lender options, or speak directly with a broker for a personalised assessment.

Equity calculator

Enter your estimated property value and current loan balance to see your usable equity at 80% LVR, and what you could access.

Calculate my equity

Free broker assessment

Our FBAA-accredited brokers compare equity products across 80+ Australian lenders, recommending the lowest-cost structure for your specific purpose.

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Home equity FAQs

Common questions Australian homeowners ask about accessing equity, answered clearly and directly.

Home equity is the difference between your property's current market value and the outstanding balance on your home loan. Example: If your home is worth $850,000 and you owe $420,000 on your mortgage, your equity is $430,000. However, most Australian lenders only allow you to access equity up to an LVR of 80%, meaning you must retain 20% of the property's value as security. Usable equity = (Property value × 80%) − Outstanding loan balance Using the example above: ($850,000 × 80%) − $420,000 = $680,000 − $420,000 = $260,000 accessible.

Home Equity Loan (Lump Sum): You borrow a fixed amount upfront and repay it over a set term, typically at a fixed or variable rate. Best for a defined one-off cost like a renovation. Home Equity Line of Credit (HELOC / revolving credit): A pre-approved credit limit you draw from as needed and repay over time. Interest is only charged on the amount drawn. Best for ongoing expenses or staged projects. Both use your property as security and are assessed based on your equity and income serviceability.

Australians commonly access home equity for: • Home renovations and improvements • Investment property deposit • Purchasing shares or managed funds • Debt consolidation (credit cards, personal loans at higher rates) • Vehicle purchase • Education costs • Business investment (specific lenders) • Emergency funds Note: Using equity for non-income-producing purposes (e.g. lifestyle expenses, holidays) is generally not tax deductible. Using equity to invest in income-producing assets may be, consult your accountant.

To access home equity through most Australian lenders, you'll typically need: • Minimum property value (usually $250,000+) • LVR remaining at or below 80% after the equity release • Demonstrated ability to service the additional debt (income assessment) • Good credit history • The property used as security must be in an acceptable location and condition Some lenders will allow equity access up to 90% LVR, but this may require LMI or result in higher rates.

Accessing equity through a formal loan application typically takes 2–6 weeks, depending on: • Whether a new property valuation is required • The lender's current processing times • Completeness of your documentation If you already have a redraw facility with available funds from extra repayments, access can be almost immediate. Your Secure Finance broker manages the application process and keeps you updated throughout.

Talk to an equity specialist

Accessing equity is a significant financial decision. Our FBAA-accredited brokers give you clear, unbiased guidance, completely free of charge.

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Calculate your usable equity

Enter your property value and loan balance, see exactly how much equity is available to access at 80% LVR.

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You've built equity in your home
— now put it to work

Find out exactly how much equity you can access and the lowest-cost way to use it. Free assessment, no obligation, no credit check.

Calculate my accessible equity

Equity access subject to lender credit assessment and valuation. Max LVR 80% with most lenders. General information only, not personal financial advice.

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