Access the equity in your property

Many homeowners find it difficult and frustrating saving for things like holidays or renovations whilst paying off a mortgage, but it doesn’t have to be.


Home equity loans are designed to give you access to the equity in your existing home loan via a line of credit loan.

Mortgage refinancing to release equity
Mortgage refinancing is a common way of accessing the equity you have built up in your existing property. The equity in your home is the distinction between the property value and what you owe on your mortgage.

The amount you can borrow is subject to the amount of equity you have built up in your property and other criteria. As a guideline you’re limited to borrowing a maximum of 90% of the value of the property.

You can use the funds from your line of credit loan to buy an investment property, renovate your existing home or to take a break.

Equity loans allow you to access the equity in your property to fund your renovation project. How much you can borrow is subject to the amount of equity you have built up in your property and other serviceability criteria, but as a guideline, even if you own your home outright you are likely to be limited to borrowing a maximum of 80% of the value of your property.

How do home equity loans work?
Home equity loans are most commonly offered as a line of credit loan, which allows you to withdraw funds up to a set limit at any time. You may be able to draw down the initial equity loan either as a lump sum or in stages. Generally a line of credit loan is an interest-only loan, and in some cases you may be able to capitalise the interest payments.

Interest rates are usually higher on line of credit loans than standard variable home loans however, some lenders offer better rates on these loans to encourage refinancing.

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