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Can you use the equity in your home to invest and build wealth? Absolutely, and many Australians are doing just that. With the right lending strategy, using equity to invest can help you grow a property portfolio, increase your net worth, and achieve your financial goals faster. In this blog, we’ll explain exactly how it […]
Can you use the equity in your home to invest and build wealth? Absolutely, and many Australians are doing just that. With the right lending strategy, using equity to invest can help you grow a property portfolio, increase your net worth, and achieve your financial goals faster.
In this blog, we’ll explain exactly how it works, when it makes sense, and how Clear Finance can help you unlock your property’s potential.
Equity is the difference between your property’s current value and the balance remaining on your mortgage. For example, if your home is worth $900,000 and your loan balance is $500,000, you may have up to $400,000 in equity, although not all of that will be usable.
Your usable equity is the portion lenders may allow you to access for investing or other financial goals. This is usually up to 80% of your property value, minus what you owe. If you’re not sure how to calculate it, here’s how to determine equity in your home:
Property value – Loan balance = Total equity
(Total equity × 80%) – Existing loan = Usable equity
Clear Finance helps property owners across Sydney and Melbourne understand their equity position and how to use it effectively.
Once you’ve built up enough usable equity, you can use equity to buy property without having to save a new deposit from scratch. This is what makes using equity to invest such a powerful strategy. Here are a few common ways equity is used to build wealth:
Many investors use their home’s equity as a deposit for their next property. If done strategically, buying investment property with equity can help you generate rental income, benefit from long-term capital growth, and scale your portfolio.
We regularly help clients with using equity to buy investment property from determining how much they can borrow, to structuring the loan to support future investments.
Equity isn’t just for investors it can also help you purchase a holiday home, a second residence, or a home for a family member. If you’re considering this route, we can advise you on how to use equity to buy a second home with the right structure.
Another popular strategy is using equity to purchase property and then upgrading or renovating it to increase value. This allows you to add more equity, refinance, or generate higher rental returns.
If you’re considering growing your portfolio, the key is knowing how to use equity to buy another property while keeping your borrowing manageable. That’s where lending strategy comes in and where Clear Finance can offer real value. We work with clients across Sydney and Melbourne, helping them understand the financial implications of each move, ensuring the structure supports long-term growth.
While using equity to invest can accelerate your wealth, it’s not without risk. Borrowing more means larger repayments, and property values can fluctuate. We recommend working with a professional who can assess your financial position and goals before making any decisions.
If you want to better understand the risks of equity-based investing, this guide from Canstar covers common mistakes and how to minimise exposure when buying an investment property.
At Clear Finance, we’re more than just mortgage brokers. We help you develop a lending strategy that supports long-term wealth without overcomplicating the process.
Whether you’re:
… we’re here to help you do it right.
We work with clients and offer tailored finance solutions backed by real experience.
Your property could be the key to unlocking your next financial move. Whether you’re ready to invest in real estate, renovate, or grow your portfolio, using equity to invest is a smart way to accelerate your goals, if done right.
At Clear Finance, we help you understand your options, structure your lending strategically, and support you every step of the way.
👉 Book a free strategy session with Clear Finance today and start putting your equity to work.
