Home Equity Loans
A home equity loan allows you to borrow money by using the value you've built up in your property as security. As you pay off your mortgage and as property prices rise, the gap between what you owe and what the home is worth—your equity—increases. You can often 'cash out' this equity for purposes such as home renovations, purchasing an investment property, or even consolidating other high-interest debts. Lenders will typically allow you to borrow up to 80% of the property's total value (LVR) without requiring mortgage insurance. When applying, the lender will perform a fresh valuation of your property and reassess your income to ensure you can afford the increased loan amount. The main trade-off is that you are increasing your total debt and potentially your monthly repayments, so it is vital to have a clear plan for how the funds will be used. We compare lenders to find those with the most generous valuation policies and the lowest rates for equity release.
When it makes sense
- Funding a major home renovation or extension.
- Providing a deposit for a new investment property purchase.
- Consolidating high-interest personal loans or credit card debt.
- Paying for large medical expenses or educational fees.
- Purchasing a vehicle or equipment using home loan rates.
- Creating a 'buffer' or emergency fund via a line of credit.
- Investing in shares or other financial assets.
Indicative terms
| Indicative loan size | 0,000 to ,000,000+ |
| Indicative max LVR | Up to 80% (standard) or 90% (with LMI) |
| Indicative rate range | 5.85% p.a. – 7.15% p.a. |
| Loan types | Lump sum top-up or Line of Credit |
| Repayment types | Principal & Interest or Interest Only |
| Required documents | Payslips, recent mortgage statement |
| Indicative timeline | 1 to 3 weeks for valuation & approval |
| Indicative fees | Valuation and loan variation fees |
How it works
- Equity Calculation — We start by estimating your current property value and subtracting your existing mortgage balance to see how much 'usable equity' you have.
- Lender Comparison — Our team compares your current lender's top-up options against a full refinance to a new lender that might offer a higher valuation or lower rate.
- Valuation — We coordinate a professional valuation of your property, which is the most critical step in determining exactly how much you can borrow.
- Approval & Cash-out — Once approved, the funds are either added to your loan balance as a lump sum or made available as a revolving line of credit for you to use.