Buying Guides
Using Equity to Invest
The equity in a property you already own can fund your next purchase without saving a fresh deposit. This guide explains how it works and how to use it sensibly.
Understanding usable equity
Equity is the difference between your property's value and what you owe. Lenders will only let you access a portion of it, known as usable equity. Understanding how much is genuinely available is the first step before making plans.
Putting it to work
Investors commonly use equity to cover the deposit and costs on another property, allowing a portfolio to grow faster than saving alone would allow. Structuring the release cleanly, often as a separate loan split, keeps your finances tidy and may matter for tax.
Doing it responsibly
Because using equity increases your borrowing, it should follow a clear plan and adequate buffers. We introduce you to independent, licensed brokers and accountants to help you do it well. We do not provide credit or tax advice ourselves.
Frequently asked questions
How do I find out my usable equity?
A lender's valuation and lending rules determine it. A licensed broker can give you a clear figure and explain your options.
Are there tax implications to using equity?
There can be, depending on how the borrowing is used. A licensed accountant should advise on your specific situation.