Step 1: Assess Your Home Equity

The first step in using your home equity is to determine how much equity you have built up in your property. Home equity is the difference between the current market value of your home and the outstanding balance on your mortgage. To calculate your home equity, subtract your mortgage balance from the current appraised value of your property. 

Step 2: Understand Loan-to-Value Ratio (LVR)

To qualify for a new loan, you’ll need to understand the concept of Loan-to-Value Ratio (LVR). LVR is the proportion of the loan amount to the value of the property you intend to purchase. Most lenders have a maximum LVR they are willing to accept, typically ranging from 80% to 95% for owner-occupied properties and lower for investment properties. With emoney Home Loans, our experienced team can help you navigate LVR requirements and find the best possible solution tailored to your needs.

Step 3: Consult with emoney Home Loans Experts

As a reputable home loan lender in Australia, emoney Home Loans can offer you personalised mortgage advice and guidance through the process of using your home equity. Our expert home loan specialists will assess your financial situation, explain the available options, and recommend the most suitable loan products based on your preferences and eligibility.

Step 4: Explore Loan Options

Once your home equity and financial position are assessed, it’s time to explore loan options that align with your goals. You may consider:

a) Home Equity Loan (Line of Credit): This option allows you to borrow against your existing equity while keeping your current mortgage intact. It provides flexibility, and you can access funds as needed, making it ideal for home renovations or investment properties.

b) Refinance: Refinancing involves replacing your existing mortgage with a new one. By refinancing, you can release a lump sum of equity to fund your new property purchase. This option may be beneficial if interest rates have dropped since you first obtained your mortgage.

Step 5: Prepare Documentation

When applying for a new loan, lenders will require documentation to assess your financial stability and eligibility. Prepare documents such as proof of income, tax returns, bank statements, and property valuation reports to streamline the application process. At emoney Home Loans, we have a streamlined application process, making it convenient for you to provide the necessary documentation.

Step 6: Apply for the Loan

With your financial documents in order, you can now apply for the loan that suits your needs. At emoney Home Loans, we work with a network of powerful banks and lenders to offer you a range of loan options with competitive interest rates and favourable terms. We will endeavour to make sure that you have only the best home loan options.

Step 7: Secure Your New Property

Once your loan is approved, it’s time to secure your new property. Whether you’re purchasing a new home or an investment property, ensure that you’ve conducted thorough research, property inspections, and due diligence to make a well-informed decision.


Using the equity in your property to buy another property can be a smart financial move, whether you’re looking to upgrade your residence or venture into real estate investment. With emoney Home Loans by your side, you can leverage our 26 years of experience in the industry and partnerships with powerful banks and lenders to navigate the process with confidence. Our expert mortgage brokers will assist you in finding the best loan options to suit your unique circumstances.

Unlock the potential of your home equity with emoney Home Loans and take a step closer to achieving your property ownership dreams.

Disclaimer: Please note that the information provided in this article is for informational purposes only and should not be considered as financial advice. Every individual’s financial circumstances are unique, and it’s crucial to seek personalised advice from professionals before making any investment decisions.

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