Could Your Home Equity Help You Buy an Investment Property?
Your home might be worth more than you owe on it. That gap is equity, and subject to lender assessment it could cover the deposit on a Queensland investment property. FAA Property handles the property side. The funding questions go to your lender or broker.
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General information only. Using equity to invest involves additional risk. Seek independent financial advice before making any decision.
EXAMPLE SCENARIOS
How Equity Could Work in Practice
These are illustrative examples. Your actual equity position depends on your lender's valuation, your mortgage balance and their lending policies.
Scenario 1: First Investment from Home Equity
Usable equity calculated at 80% LVR. Subject to lender assessment, this may be enough to fund the deposit and costs on an investment property.
Scenario 2: Home Equity with a Smaller Mortgage
Usable equity calculated at 80% LVR: 80% of the $750,000 home value, less the $280,000 mortgage. A lower value than Scenario 1, but a smaller mortgage leaves more usable equity. Subject to lender assessment, it may cover the deposit and costs on an investment property.
Illustrative examples only. Actual equity, borrowing capacity and investment outcomes will vary. Seek independent financial advice.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
WHO THIS IS FOR
Is Using Equity the Right Path for You?
Homeowners With Equity
Your home has gone up in value. You want to know if that equity could cover a deposit on an investment property without dipping into savings.
Existing Investors
You already own investment property. Subject to lender assessment, equity from your existing portfolio could fund the deposit on your next one.
No Cash Deposit Saved
You haven't saved a separate cash deposit, but your home has built up equity that could serve the same purpose, subject to lender assessment.
Growth-Focused Investors
You want to build a portfolio over time. Using equity to move sooner means more years of potential capital growth.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
How Equity May Help You Invest
Most homeowners don't realise how much equity they've built up. Here's how it could work in your favour.
Deposit Funding
Subject to lender assessment, the equity in your home could replace the cash deposit you'd normally need.
Invest Sooner
Subject to lender assessment, using equity rather than waiting to save a cash deposit could mean you invest sooner. More time in the market means more time for potential growth.
Portfolio Growth
If your properties grow in value, they create more equity. Subject to lender assessment, that equity could fund further purchases, building a portfolio over time.
Tax Considerations
Interest on borrowings used to buy an investment property may be tax-deductible. Talk to your accountant about your specific situation.
Keep Your Savings
If equity covers the deposit, you can keep your cash savings as a buffer for unexpected maintenance, vacancy gaps or rate changes.
Access Without Selling
You don't have to sell your home to use the equity. You access it through refinancing or a separate loan facility.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
THE FAA INVESTMENT PATHWAY
The FAA Equity Investment Process
Your path, step by step.
Lender or Broker Assessment
Usable equity and borrowing capacity are assessed by your lender or broker, not by FAA Property.
Property Sourcing
FAA sources investment opportunities that align with your equity position, borrowing capacity and investment goals.
Cost Analysis
Receive a full cost analysis showing projected cash flow, holding costs and growth for suitable properties.
Acquisition Support
FAA coordinates with your lender, solicitor and the builder through to settlement and handover.
Tenant Placement
Professional leasing and tenant screening to have your investment property tenanted quickly after settlement.
Ongoing Management
Local Sunshine Coast property management handles the day-to-day so you can focus on your long-term strategy.
Result: An investment property sourced to your strategy.
Talk through the property you want to buy.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
Using Equity to Invest: Frequently Asked Questions
Take 80% of your property value and subtract what you owe. For example: home worth $800,000, mortgage of $400,000. 80% of $800K is $640K. Subtract $400K and your usable equity is roughly $240,000. Your lender's valuation and policies will determine the exact number.
Not always. Some lenders let you access equity through a separate loan split or a line of credit. Others may need a full refinance. Your broker or lender can tell you which option suits your situation.
Yes. You're borrowing more against your existing property. If values drop or your financial situation changes, you could owe more than your properties are worth. Get independent financial advice and understand the risks before proceeding.
Yes. Equity from existing investment properties can fund further purchases too, subject to your lender's policies and your overall borrowing capacity.
If your existing lender can do it, typically 2 to 4 weeks. If you need to refinance, allow 4 to 8 weeks depending on the valuation and approval process.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
EXPLORE
Related Investment Pages
Investment Property Sourcing
See all the property types FAA sources for Queensland investors.
Learn moreFirst Investment Property
Never bought an investment property? Start with the numbers.
Learn moreBuild a Property Portfolio
Equity is how most investors fund their second and third property.
Learn moreNew Build Properties
New builds are a popular choice for equity investors.
Learn moreBook a Strategy Call
Talk to FAA about the property side of your purchase. No cost, no obligation.
Learn moreOffice hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
General information only. FAA Property does not provide personal financial advice. Using equity to purchase investment property increases your debt and your risk exposure. Property values can decrease as well as increase. Borrowing capacity, equity calculations and investment outcomes depend on individual circumstances and lender policies. You should seek independent financial, tax and legal advice before making any investment decision. FAA Property earns commissions from builders and developers when a property purchase proceeds.
Office hours: Monday to Thursday 8:30am to 5:00pm, Friday 8:30am to 4:00pm
RESOURCES
From the Blog
Guides, insights and market updates for Queensland investors.
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