Turning Home Equity Into a Second Property
A homeowner whose property had grown in value, but with no spare cash for a deposit.
The situation
Their home had grown in value over several years, and they wanted to start investing. The problem was cash. With a mortgage and normal living costs, saving a fresh deposit for a second property felt impossible.
The challenge
They did not realise the deposit was already sitting in their home as usable equity. When they raised it with their bank, the bank wanted to use both properties as security for one big loan, which would have tied their hands later.
What we did
We worked out their usable equity, around $140,000, and released it as a separate, ring-fenced loan split rather than cross-collateralising the two properties. We matched them to a lender whose serviceability assessment supported the second loan, and kept the structure clean so they can sell or refinance either property independently later.
The result
They bought an investment property of around $560,000 funded entirely from equity they already had, without putting in new cash, and with a loan structure that keeps their options open.
Your situation is different. Let us look at it.
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Book a Free ChatThis is an illustrative scenario based on common client situations, not a specific individual, and the figures shown are examples only. Every application is assessed on its own merits and outcomes vary. This is general information, not financial or credit advice. Matty Teague is a Credit Representative (CR 573962) of Flint Group Pty Ltd (ACL 488313).