Utilising Equity to Purchase a Second House in Canberra

Tap into Equity for Wiser Investment

One of the best ways to expand your Canberra property portfolio is to leverage the equity on your current property to purchase a second. It’s a very effective technique that permits investors to tap new funds without withdrawing savings. At Taz Mortgage Solutions, our experienced finance brokers and mortgage and finance brokers guide you through this option seamlessly and with assurance.

This article is one of our pillar content pieces: A Complete Guide to Investment Property Loans in Canberra, which deconstructs the fundamentals of investing in borrowing. If you’re serious about investing in property to grow your wealth, then you should know about equity.

What Is Equity and How Can You Use It?

Equity is how much your property is worth minus the remaining mortgage you owe.
For example:

• Property value: $900,000

• Mortgage owing: $500,000

• Equity: $400,000

However, you can’t use all of it. Lenders let you access up to 80% of your property’s value minus the debt.

Calculation Example:

• 80% of $900,000 = $720,000

• $720,000 – $500,000 = $220,000 usable equity

This $220,000 can be used as a deposit on a second property or for other investment-related expenses.

Why Use Equity for a Second Property?

1. No Need for Cash Savings

Equity gives you immediate purchasing power, so you can invest earlier rather than waiting to save.

2. Leverage Your Current Investment

Your property has appreciated. Equity allows you to use this increase to fund future investments.

3. More Portfolio Diversification

Investing in a second property allows you to diversify by location, property type, and rental income.

How Taz Mortgage Solutions Helps

Our Canberra-based finance brokers will:

• Assess your home loan

• Calculate usable equity

• Structure the next loan to match your goals

We connect with major banks and specialist lenders to give you options. Our mortgage and finance brokers focus on long-term strategies that benefit you.

Things to Consider Before Using Equity

Your Current Loan Structure

Refinancing may help unlock more equity or provide better rates.

Borrowing Capacity

Lenders assess more than equity—like income, debts, and spending habits.

Property Goals

Choose your property based on whether you’re seeking capital growth, rental yield, or both.

Connecting to the Larger Picture: Investment Property Loans

Using equity is just one aspect. Read our pillar blog for more insights:

• Fixed vs Interest-Only Loans for Investors

• Understanding Rental Yield and Capital Growth

• Helping First-Time Investors

These pieces help shape your investment strategy for better returns.

Real Scenario: Utilising Equity in Action

Imagine you bought in Tuggeranong 7 years ago:

• Purchase Price: $500,000

• Current Value: $850,000

• Mortgage Remaining: $400,000

• 80% of $850,000 = $680,000

• Available Equity = $680,000 – $400,000 = $280,000

This could be your deposit for a second property. With rental returns, the new loan may pay for itself. We help structure this process—forms, strategy, and approvals included.

Why Use Finance Brokers?

Finance brokers provide more flexibility than direct lenders. At Taz Mortgage Solutions, we:

• Compare options

• Negotiate rates

• Handle paperwork

• Support you post-approval

Our Advantages:

• Expertise in Canberra’s investment market

• Loan structuring tailored to equity release

• Access to a variety of lenders

• Fast, smooth approval process

Begin Your Next Step in Investing Today

Utilising equity can unlock the next chapter of your property investment journey. But don’t go it alone.

Partner with Taz Mortgage Solutions—your trusted mortgage and finance broker in Canberra. We’ll help assess your equity, explore options, and secure the best loan for your second property.

Contact us today and turn your current home into a tool for building long-term wealth.