Want to renovate, buy an investment property, or fund a big goal — without selling the home you love? There’s a good chance the money is already sitting in your property, as equity. In 2026, with values holding firm across much of the market, releasing equity is one of the most cost-effective ways homeowners fund their next move. Here’s how it works and what to weigh up.
What is equity?
Equity is the difference between what your home is worth today and what you still owe on it. If your property has grown in value or you’ve been steadily paying down the loan, you may be sitting on a valuable, low-cost source of funds.
How much can you actually use?
You usually can’t borrow against all of it. Lenders generally let you access up to 80% of your home’s value minus your current loan — go above 80% and you’ll typically pay Lenders Mortgage Insurance (LMI).
A quick example:
- Home value: $1,000,000
- 80% of value: $800,000
- Less current loan: $600,000
- Usable equity: ~$200,000
Remember: your borrowing capacity still depends on your income, expenses and credit profile — not just the value on paper.
Ways to access your equity
- Loan increase (top-up) — the simplest route if you’re happy with your current lender; you increase your existing loan.
- Refinance with cash-out — switch to a lender offering a better rate and a higher loan, freeing a lump sum.
- Line of credit — a revolving facility secured by your home; draw only what you need, when you need it. Handy for staged renovations.
- Using equity as a deposit — rather than taking cash, use your equity as the deposit on an investment property, keeping your savings intact.
What people use released equity for
- Renovating or extending the family home
- Buying an investment property (using equity as the deposit)
- Consolidating higher-interest debts into a lower home-loan rate
- Funding education, a wedding, or family support
- Building a financial buffer or investing
Things to weigh up
Releasing equity means increasing your loan, so go in with eyes open:
- Your repayments will rise — make sure they’re comfortable, even if rates move
- Don’t over-leverage — borrow to a level that leaves you a buffer
- Staying at or under 80% avoids LMI
- Tax matters: interest on equity used for investment purposes may be deductible, while equity used for personal spending generally isn’t — confirm your situation with your accountant
How we help
The right structure depends on what you’re funding, your rate, and your plans. As Brisbane mortgage and finance brokers, we compare your options across a wide panel of lenders, get your property valued to confirm your usable equity, and structure the release so it supports your next move without over-stretching you. If it’s equity to grow a business rather than a personal goal, see our guide on financing business growth using equity.
Ready to see what your equity could unlock? Contact The Brokerage to talk it through.