You can use the equity in your current home or investment property to help finance your next purchase. Equity is the difference between your property’s market value and the remaining loan balance. By releasing equity through a refinance or top-up loan, many investors borrow up to 80% LVR (sometimes higher depending on the lender) to access funds for their next purchase.

This usable equity can then be applied towards the deposit for an investment property, transfer duty, legal costs, and other upfront expenses. It’s one of the most effective ways to grow a property portfolio without needing to save a large cash deposit.

Example:

If your property is worth $800,000 and your loan balance is $400,000, you have $400,000 in equity. At an 80% LVR, lenders may allow you to borrow up to $640,000. After paying out the existing loan, you could access approximately $240,000 in usable equity enough for a deposit and purchase costs on a new investment property.

A cash-out refinance allows you to replace your existing home loan with a new, higher-value mortgage and access the difference in cash. It’s one of the most common ways Australian homeowners and property investors unlock equity that has built up through capital growth.

The released equity can be used for a wide range of purposes, including:

• Buying an investment property** (using the funds as a deposit and covering upfront costs)

• Renovating your current home or rental property** to increase rental income or property value

• Debt consolidation**, combining high-interest debts into one lower-rate home loan

• Funding major expenses**, such as upgrades, repairs, or portfolio-building strategies

This makes a cash-out refinance a powerful tool for anyone looking to grow their property portfolio or improve cash flow using existing equity.

The Debt-to-Income (DTI) ratio is a key measure lenders use to assess **home loan serviceability and determine how much you can borrow. Your DTI compares your total gross annual debt commitments — including home loans, personal loans, car finance, HECS/HELP debt and credit cards — against your gross annual income.

A lower DTI score signals lower financial risk, which can increase your borrowing capacity and improve your chances of loan approval. A higher DTI indicates you are carrying more debt relative to your income, which may limit how much lenders are willing to offer.

Most Australian lenders have strict DTI limits (often between 6 and 7), and they also stress-test your income against higher interest rates to ensure you can comfortably manage repayments over the long term.

Understanding your DTI — and how lenders calculate it — is essential when planning a home loan or investment strategy, as it directly affects your borrowing power.

Yes. Lenders use a conservative approach known as income shading when assessing an investment loan application. They typically only count a percentage of the gross rental income (e.g., 70% to 80%) to account for potential vacancy rates, property management fees, and other ongoing expenses. This is a crucial detail that affects your overall borrowing capacity and serviceability calculation.

An offset account is a transactional bank account linked directly to your variable rate loan. The balance in this account is 'offset' against your loan principal when calculating interest. For example, if you owe $400,000 and have $50,000 in the offset account, you only pay interest on $350,000. This is highly valuable as it effectively reduces your interest payable while keeping your money liquid.

This is a key decision based on your risk appetite and financial outlook. A fixed rate loan provides repayment certainty for a set period, protecting you from rising interest rates, but often lacks flexible features like offset accounts and may incur break costs if you refinance early. A variable rate loan offers maximum flexibility (extra repayments, offset accounts) but exposes you to interest rate rises. Many seasoned investors use a split loan strategy (part fixed, part variable) to get the benefits of both. We can run your numbers to determine the best home loan option for your investment goals.

Pre-approval is a conditional loan approval from a lender based on an assessment of your financial position (income, expenses, debt). It provides an estimate of your maximum borrowing limit. Getting pre-approval is highly recommended as it gives you certainty on your budget, speeds up the process once you find a property, and demonstrates to agents and sellers that you are a serious and qualified buyer.