Designed for homeowners who want lower repayments, renovation funds, or a clearer path to long-term wealth.
Equity can be a powerful tool when it’s used intentionally. Here are some of the most common ways clients put it to work.
How you access equity hasn’t changed — but what you do with it now depends on the asset
Accessing equity works the same way it always has — you increase your loan limit or refinance, and deploy the funds through a separate, clearly structured investment split. The lending mechanics are unchanged.
What has changed is the tax treatment of what you invest in. The 2026 Federal Budget introduced new rules for established residential investment properties purchased after 12 May 2026. Other uses of equity — renovations, debt consolidation, shares, new builds — are largely unaffected. Here is how each path compares.
| Use of equity | Budget impact | Interest deductibility | Loan structure complexity |
|---|---|---|---|
| Renovations | None | N/A — personal use | Low |
| Debt consolidation | None | N/A — personal use | Low |
| Shares / managed funds | None | Fully deductible against wages | Medium — clean split required |
| Established investment property (post-Budget) | Significant | Ring-fenced from 1 Jul 2027 | Medium — structure critical |
| New residential build | Minimal | Fully deductible against wages | Medium — clean split required |
| SMSF deposit contribution | None (SMSF excluded) | Under SMSF rules (15% rate) | High — LRBA & adviser required |
The lending side hasn’t changed — but the planning conversation has. Regardless of which path you choose, getting the loan split structure right from day one remains essential. A poorly structured equity release can contaminate deductibility and create problems that are costly to unwind. I handle the lending structure — your accountant or financial adviser should be part of the conversation before you decide how to deploy the funds, particularly for investment purposes.
Estimate your total equity and usable equity based on a target maximum LVR. (This is a guide only — lender policy, valuations and servicing still apply.)
Pop your name and mobile in below and I’ll confirm what’s realistically available once we factor in lender policy, valuation and your goals.
This calculator is general information and not credit advice. Contact the Mortgage Broker for correct loan structuring and credit advice.
Sometimes a sharp negotiation with your current lender is enough. Other times, switching lenders gives you a much better long-term outcome. My job is to help you see the difference.
A clear, structured approach that helps you unlock equity with confidence.
A few words from homeowners I’ve helped refinance, access equity and get their loans working harder for them.
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James was incredibly helpful from start to finish. He clearly explained our options, handled the paperwork and secured a mortgage with a rate we were very happy with. We felt informed the whole way through and would happily recommend James to anyone needing home loan advice.
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James provided a clear summary of where we stood and a detailed analysis of our options. He quickly understood our situation and came back with a solution that suited us perfectly. We’re grateful for his expertise and wouldn’t hesitate to refer friends and family to him.
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James was exceptional to work with. He helped us refinance and consolidate our other debts into one manageable loan, and did it in a calm, non-judgemental way. We felt comfortable throughout the process and would highly recommend him to anyone needing financial guidance and support.
A simple, predictable process that gives you clarity from the first conversation through to settlement.
These FAQs cover the most common questions I’m asked about using your home’s equity when you refinance.
Let’s start with the basics. Equity is the difference between the current value of your home and how much you owe on it. So, if your home is worth $500,000 and you still owe $200,000, your total equity is $300,000.
Banks will typically allow you to borrow up to 80% of the value of your home.
The difference between the 80% and what you owe is the usable equity (subject to serviceability).
Based on the example above, let’s look at the numbers:
Value of your property $500,000
Value of your property at 80% $400,000
Minus your mortgage $200,000
Which means your potential usable equity would be $200,000.
To access your equity, you need to apply to the lender to increase the loan limit. If your lender is not as competitive as others, refinancing with a new lender to a lower interest rate at this time could be a wise choice.
Most lenders allow borrowing up to around 80% of your property value without Lenders Mortgage Insurance. The amount of usable equity depends on the valuation, your current loan balance and your borrowing capacity. Mortgage brokers will calculate for you as part of the review.
It can, because you are increasing the total loan amount. However, if we secure a lower interest rate or consolidate high-interest debts, repayments could be lower than you are currently paying.
Debt consolidation using equity can improve cash flow by reducing monthly repayments and tidying up multiple debts. If you were to maintain your current repayments, you could save tens of thousands of interest costs and shave years off your loan term. I show you the actual cost of each approach so you can decide whether consolidation makes sense for you.
In most cases, a valuation is required to confirm your property value. Mortgage Brokers will arrange this on behalf of the bank, and in most cases, there is no cost to you. Using equity can affect your future borrowing capacity, especially if you plan to upgrade or invest again. As part of the advice process, I structure the loan with your future goals in mind.
The mechanics of accessing equity haven't changed — you still access it by increasing your loan limit or refinancing, and the funds are deployed via a separate investment loan split.
What has changed is the tax treatment of what you do with that equity once deployed, particularly for established residential property purchased after 12 May 2026.
Rental losses on those properties will be ring-fenced from 1 July 2027 and can no longer offset wage income.
For equity used to invest in shares, managed funds, or new residential builds, the existing tax treatment is largely unchanged.
Your accountant should be part of the planning conversation before you deploy equity for investment purposes.
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