Key takeaways
- Equity access refinancing means increasing your loan balance to release some of your property’s equity as cash.
- Usable equity is generally limited to 80% LVR minus your current loan balance, to avoid LMI.
- It requires a property revaluation and a serviceability check at the higher loan amount.
- Released equity can fund renovations, investment deposits, debt consolidation or major purchases.
Equity is the part of your home you actually own, the difference between what it is worth and what you owe. As you pay down your loan and property values rise, that equity grows, and refinancing is one of the main ways to tap into it. Andy has helped Western Australians do this sensibly since 2000, always with one eye on whether it leaves you better off.
How Equity Access Works
Equity access refinancing involves increasing your loan balance to access property equity as cash. In practice, you refinance to a larger loan, and the extra amount is released to you to use. The property stays as security, and your repayments adjust to the new balance.
Working Out Your Usable Equity
Not all your equity is usable. Usable equity is limited to 80% LVR minus your current loan balance, because borrowing above 80% usually triggers lenders mortgage insurance. Here is a simple example:
| Item | Amount |
|---|---|
| Property value | $700,000 |
| 80% of value | $560,000 |
| Current loan balance | $350,000 |
| Usable equity (approx.) | $210,000 |
So in this case, you could potentially access around $210,000 without crossing the LMI threshold, subject to serviceability.
What the Lender Needs
Equity refinancing requires a property revaluation and a serviceability assessment at the higher loan amount. The lender needs an up-to-date valuation to confirm the equity is really there, and it needs to be satisfied you can comfortably afford the larger repayments. This is where a good broker helps, packaging it so the application is strong.
What You Can Do With It
Released equity can fund renovations, investment deposits, debt consolidation or major purchases. Common uses include renovating to add value, using equity as the deposit on an investment property, or rolling expensive debts into your lower home loan rate. Just remember, equity access increases your loan balance and monthly repayments, so the purpose needs to be worth it.
How Andy Helps
Andy structures equity release to maintain serviceability and tax efficiency. If you are using the equity to invest, how the loan is set up can affect what is tax deductible, so getting the structure right from the start matters. For more, see refinancing to release equity.
The Next Step
Wondering how much equity you can actually use? Andy can estimate it and map out your options. See the refinancing page and get in touch.
Equity Access Questions
How much equity can I access?
Usually up to 80% of your property’s value minus your current loan balance, to avoid LMI. A current valuation confirms it. Andy can give you an estimate.
Do I need a property valuation?
Yes. The lender needs an up-to-date valuation to confirm the equity and will also assess whether you can service the higher loan amount.
Can I use the equity to buy an investment property?
Yes, that is a common use. How the loan is structured affects tax deductibility, so it is worth getting Andy to set it up correctly from the start.
Related Services
Renovation & Home Improvement Refinancing
Renovation & Home Improvement Refinancing →
Refinancing to Release Equity
Access the difference between your property's value and what you owe — fund renovations, investment deposits, or debt consolidation.
Refinancing to Release Equity →
Refinancing for Self-Employed Borrowers
Self-employed refinancing requires recent business financials and alternative income verification. Andy structures applications to maximise approval chances, working with specialist…
Refinancing for Self-Employed Borrowers →
Refinance Your Home Loan
Refinancing your home loan replaces your existing mortgage with a new loan offering lower interest rates, better features, or access…
Refinance Your Home Loan →
Refinance to Lower Your Rate
Refinancing to lower your rate typically saves Perth homeowners $150–$300 a month when the gap between your current rate and…
Refinance to Lower Your Rate →
Cash-Out & Equity Release Refinancing
Cash-out refinancing lets you tap into your home's equity for renovations, investments, debt consolidation, or major purchases. Andy walks you…
Cash-Out & Equity Release Refinancing →
We Make Finance a Breeze
Related Articles
