From Dimity’s Desk – Leverage Your Brisbane Property’s Equity for Smart Investing

News
March 26, 2025

Unlock Your Wealth: Leverage Your Brisbane Property’s Equity for Smart Investing

Brisbane’s property market has experienced significant price growth, boosting the equity in your investment property. If you’ve been considering expanding your portfolio, now could be the perfect time to tap into your equity and invest in your next property.

With rising property values, many investors are using their increased equity as a deposit for a new investment—without needing to dip into savings. But how do you do it effectively while maximising your returns?

In this edition, we’ll explore how you can access your equity, finance your next investment, and make the most of Brisbane’s booming market.

  1. Understand Your Equity

Equity is the difference between your property’s market value and the remaining mortgage balance.
For example, if your investment is worth $800,000 and your remaining mortgage is $400,000, your total equity is $400,000.

  1. Determine Usable Equity

Lenders typically allow you to access 80% of your property’s value minus any existing mortgage.
Using the example above:

  • 80% of $800,000 = $640,000
  • Minus mortgage of $400,000 = $240,000 usable equity

You may be able to borrow more (up to 90%) with Lenders Mortgage Insurance (LMI), but this adds extra costs.

  1. Ways to Access Equity

Once you determine your usable equity, you can access it through:

  • Home Equity Loan: A separate loan using your equity as security.
  • Loan Top-Up: Increase your existing home loan amount.
  • Refinancing: Replacing your existing mortgage with a larger one.
  1. Use Equity as a Deposit for Investment Property

Once your equity is unlocked, it can be used for:

  • Deposit (typically 20%)
  • Stamp duty & legal fees
  • Renovation or other costs

Brisbane’s rising property prices present a golden opportunity to grow your investment portfolio. By leveraging your home equity wisely, you can secure your next property without needing a large cash deposit.

However, smart investing requires careful planning—understanding your borrowing capacity, market conditions, and investment strategy is key. Whether you’re looking to buy your next rental property or diversify your portfolio, now is the time to explore your options.

Need expert guidance? Speak to one of our qualified mortgage brokers to structure your loan effectively and make the most of Brisbane’s booming market.

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.