If you’ve paid down your home loan somewhat or your property has appreciated in value, you may be able to use your home’s equity to fund an investment property purchase
Knowing how to use your home equity can help you achieve financial goals, but it’s important to weigh the risks, like increased debt and changing interest rates.
Let’s look at what equity is, why use your equity to buy an investment property, and how to do so.
Equity is the difference between the market value of your property and the balance remaining on your home loan.
Say your property is worth $1,000,000 and you owe the lender $200,000. Your total equity is $800,000.
However, not all of that equity is accessible. This is where usable equity comes in. Banks will typically lend you 80% of the value of your home, minus your existing loan balance.
In this example:
In some instances, you may be able to borrow more if you take out Lenders’ Mortgage Insurance (LMI).
Using the equity in your home to purchase an investment property can be a powerful strategy, but it’s important to weigh both the benefits and potential risks. That’s why it’s essential to seek professional advice – whether financial, legal, or tax-related – to ensure this approach aligns with your goals and circumstances.
Let’s take a closer look at some of the key advantages and potential drawbacks of using your equity to invest.
Refinancing to unlock your equity is a popular option. This involves taking out a new loan to pay off your old mortgage, with some money left over – that is, your equity. You can then use that money as a deposit, and take out a new loan for the investment property.
A common way to borrow against the equity in your home is to get a home loan top up or increase. This involves increasing your current mortgage limit to allow you to access the funds (which can then be used for a deposit for the investment property).
Cross-collateralisation involves using your home as collateral and adding it to the new investment property loan, to help get the purchase over the line. In this scenario, you’d end up with 2 loans – the original mortgage secured by your home, and the new mortgage secured by your home and the investment property.
Another option is to set up a line of credit and use the money as a deposit for your investment property. With this scenario, your lender would approve you for a specific amount, based on your usable credit. The benefit of a line of credit is that you only pay interest on the amount that you borrow, rather than the entire limit.
There may be other finance options to help you use your equity to buy an investment property (such as a supplementary loan or home equity loan).
To get started, give us a call today to talk through how you can unlock your equity – we’re here to help!
If you’re new to buying property, you’ll want to understand your credit report and how it may impact your home loan application.
Think of your credit report as your financial report card, showcasing how you manage your debts and financial obligations. Here’s why it’s important when you want to take out a home loan.
What is a credit report?
A credit report is a detailed account of your credit history, compiled by credit bureaus. It includes your credit products, repayment history, personal information, defaults, credit applications, bankruptcy records, and credit report requests.
Lenders take into account your credit report when deciding whether to lend you money and when assessing your creditworthiness.
What about a credit rating?
Your credit report includes a credit score, otherwise known as a credit rating.
This value is calculated based on what’s in your credit report. Factors such as how much money you’ve previously borrowed, the number of credit applications you’ve made and your tendency to pay on time will all be taken into account when calculating your credit rating.
Depending on the credit reporting agency, your score may be between zero and 1,000, or zero and 1,200. The higher the credit score, the better.
You can access your credit report for free every 3 months. It’s a good idea to review yours once a year, particularly if you’re planning to buy a property in the near future.
To request a copy, try these credit reporting agencies:
Keep in mind that different agencies may have different information about you, so you might have to reach out to multiple agencies for your credit report.
If you notice something is incorrect in your credit report, for example that some of the debts are not yours or that your personal details are wrong, contact the credit reporting agency and ask them to fix it. There shouldn’t be a charge for this.
It’s really important to do this, as failing to do so could jeopardise future credit applications.
Manage credit card balances: Keep balances low and within the credit limit. Pay off balances in full or more than the minimum payment.
Use credit responsibly: Avoid maxing out cards, make timely payments, and don’t take on excessive debt.
Review your credit report: Regularly review for changes or errors, promptly reporting inaccuracies.
Pay your bills on time: Set up direct debits to automatically pay your bills before the due date.
Improve your credit mix: If your credit mix lacks diversity, this can have a negative impact on your credit score.
Limit new credit applications: Apply only when necessary to avoid numerous hard inquiries.
If your credit report isn’t in the greatest shape, don’t despair. There may still be ways to secure the finance you need to purchase your home.
Some lenders specialise in ‘bad credit’ home loans and take into consideration any personal circumstances that may have affected your ability to repay in the past. These kinds of loans often come with higher interest rates and fees, but if your options are limited, they may be worth considering.
To chat to us about your finance options, including whether a specialist lender could help you, get in touch today.
Have you ever had a client who was struggling to get a home loan because they didn’t have enough of a deposit saved? Or wanted to avoid paying Lenders Mortgage Insurance (LMI)?
Guarantor Loans could be an accessible option!
A Guarantor loan is where a family member ( usually a parent ) offers part of their property as security to help the borrower purchase a property. This can assist with;
✅Buying with little to no deposit
✅Avoid costly Lenders Mortgage Insurance premiums
✅Get their foot in the property market earlier
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Who can be a guarantor? Usually parents, but it can also be other family memebers or close assosciates with suitable security
How does it work?
Click below to watch the video and learn more;
We often see the standard lending policies for self-employed borrowers, can be a massive roadblock for residential lending. Not every client has two years of clean tax returns ready to go.
That’s where Non-Conforming Lenders come into play with their Low Doc / Alt Doc lending options.
These types of loans are designed for self-employed applicants who can demonstrate income using alternative options like:
✅ BAS statements
✅ Business bank statements
✅ Accountant’s declarations
Other benefits these lenders offer;
✅ Consolidation of Business Loans under a residential mortgage
✅ Consolidation of ATO debt under a residential mortgage
✅ Access to lower assessment rate buffers ( Greater servicing ability )
Recent Success Story:
We recently helped a self-employed client who’d only been trading for 18 months. She didn’t have two full financial years yet but had solid turnover. Using her BAS statements, we secured her an 80% LVR investment loan… with no headaches and a fast approval.
Click below to watch the video and learn more;
YOUR FIRST HOME BUYERS GUIDE
Crafted by your local Mortgage Brokers
WHO IS MY LENDING SPECIALIST?
At My Lending Specialist, we are more than just mortgage brokers — we are your local trusted partners in achieving homeownership.
With a deep understanding of the lending market and a passion for helping first-home buyers, we provide tailored finance solutions to suit your unique needs.
Our team is dedicated to making the loan process simple, stress free, and transparent, ensuring you feel confident every step of the way.
Whether you’re purchasing your first home, refinancing, or investing, we take the time to find the right loan for you — so you can focus on what matters most, turning your dream home into a reality!
WHY USE A MORTGAGE BROKER?
At My Lending Specialist, we simplify the home loan process, ensuring you find the best mortgage solution without the hassle.
THINKING ABOUT BUYING?
Buying Your First Home? Let’s Make It Happen!
Buying your first home is an exciting milestone, but it can also feel overwhelming. That’s why we’ve created this comprehensive guide—to simplify the process and help you take confident steps toward homeownership.
What to Consider Before You Buy
NSW GOVERNMENT SCHEMES
First-home buyers in New South Wales (NSW) have access to several government programs to make purchasing a home more achievable.
Below we have included a brief overview:
First Home Owner Grant (FHOG)
First Home Buyers Assistance Scheme (FHBAS)
Home Guarantee Scheme (HGS)
These initiatives aim to reduce costs and financial barriers, making homeownership more accessible for first-home buyers in NSW.
READY TO BUY
You’ve done the groundwork, and now it’s time to take the next step toward homeownership. Being prepared at this stage will help you buy with confidence and avoid unexpected surprises.
Get Pre-Approval – Work with your broker to confirm your borrowing power and to become a serious buyer in the market.
Research the Market – Compare recent sales, check suburb trends, and future developments. Talking to your local agents is valuable.
Know the Buying Process – Understand the difference between private sales and auctions and what each involves.
Inspect the Property – A building and pest inspection can reveal potential issues.
Review Contracts – Have a solicitor or conveyancer review the contract of sale before signing.
Budget for Additional Costs – Stamp duty, legal fees, loan fees, and insurance should all be factored in.
BUYING YOUR PROPERTY
Making an Offer
If you’re buying through auction, you’ll need to register as a bidder and have your deposit ready. If you place the winning bid, contracts are signed, and a deposit is paid on the same day.
For a private sale, you’ll negotiate the price with the seller, usually through the real estate agent. Once an agreement is reached, contracts are signed, and a deposit is paid, typically within a few days.
Finalising Your Finances
After your offer is accepted, the next step is securing final loan approval. Your lender will complete a property valuation, and we’ll guide you through the final paperwork to ensure everything is in place before settlement.
Getting Ready for Settlement
The period between signing the contract and settlement is your chance to finalise all details. During this time, you should:
Settlement Day
On settlement day, legal and financial representative complete the transfer of ownership, and once everything is finalised, you’ll receive the keys to your new home. You’re Officially a Homeowner!
NEED EXPERT GUIDANCE?
LET’S TALK!
At My Lending Specialist, our team of local experts is dedicated to making the home-buying process simple, stress-free, and tailored to you. Whether you need help navigating government grants, loan pre-approvals, or understanding your borrowing power, we’ll provide the support and advice you need to make informed decisions.
DANYELLE FRANK & DAMIEN AGOSTINI
We’d love to hear from you! Whether you have questions or need
assistance, we’re here to help.
If you would like a printed version of this guide or would like to share this with someone looking to get into the property market, please click the link below for a pdf version.
Ever had a client miss out on their next home because they hadn’t sold yet? Let’s break down how bridging loans can solve that problem — and when they actually work.
A bridging loan allows your client to purchase a new property before selling their existing one. It gives them flexibility, removes pressure to sell quickly, and is especially useful for those clients with restricted borrowing capacities.
It’s not as risky or confusing as many people think — when structured properly, it can be a game changer.
Here’s how brief overview on how Bridging Finance works:
· Bridging works best when there’s solid equity in the existing home
· We’ll do the maths and structure the deal to protect cashflow and reduce risk
✅ Success Story – Bridging Saves the Deal
A real estate agent referred a couple who had found their dream acreage property — but hadn’t yet listed their home. They had over $400K in equity, so we arranged a bridging loan with interest-only repayments, giving them time to sell without stress. They listed two weeks later, sold in eight — and walked into their new home without needing to rent in between or take a rushed offer.
Click below to watch the video and learn more;
Over the past few months, I’ve had more conversations about ATO debt than I’ve had in the past year.
Why? Because from 1 July, interest charges on tax debt – like the 11.17% General Interest Charge – will no longer be tax-deductible. That “small” change is creating a big shift in client behaviour.
For many business owners, tax debt has always been a manageable challenge because of the ability to claim interest as a deduction. With that safety net about to disappear, the cost of doing nothing is about to get a lot higher.
I recently spoke to Loan Market Group and Mortgage Professional Australia about the sharp increase we’re seeing in funding demand directly linked to ATO debt. The urgency is real and it’s building.
Read the short article here: 📈 Article: https://www.mpamag.com/au/specialty/sme/business-lending-enquiries-climb-amid-ato-debt-rule-changes/540429
If you have a business owner sitting on ATO debt, now is the time to act. Refinancing or consolidating could help them avoid what might become a much more expensive liability in the new financial year.
Feel free to reach out if you’d like to chat through options.
Ever had a client who gave up on buying because they didn’t have a 20% deposit…or couldn’t afford the LMI bill? Let’s clarify what that actually means.
Lenders Mortgage Insurance (LMI) is an insurance policy that the borrower pays when they have less than a 20% deposit. It protects the lender, not the borrower — and it can cost tens of thousands of dollars, depending on the loan size and deposit.
There are a few ways we can avoid paying lenders mortgages insurance, the most common are below;
1. First Home Guarantee – Not Just for First-Time Buyers
2. Single Parent Guarantee – 2% Deposit, No LMI
3. Professional LMI Waivers – Who’s Included? Many banks offer LMI waivers up to 90–95% LVR for select professionals.
Some of the eligible occupations include (varies by lender):
4. Pepper Money’s New Policy – 90% No LMI
Pepper has just rolled out a 90% LVR loan with no LMI for most borrowers — a solid solution for people with good income and clean credit who might not tick every “bank” box.
Click below to watch the video and learn more;
At My Lending Specialist, we’re always looking for ways to add value to our client’s and business partners. That’s why I’m launching a fortnightly email update tailored specifically for clients and professionals like you — accountants, solicitors, conveyancers, financial planners, and real estate agents.
The Fortnightly editions will include some of the following:
✅ Unique Lending Policies – Insider insights into lender policies that could benefit your clients.
✅ Case Studies – Real-life scenarios where we’ve helped secure finance in complex situations.
✅ Market Updates & Trends – Quick, relevant lending updates to keep you informed.
✅ Tips to Help Your Clients – Practical advice that could make a difference in their borrowing journey.
This is designed to be a short, high-value read, ensuring you’re equipped with the latest lending knowledge without taking up too much of your time.
Click below to watch the video and learn more;
Rates shift, life changes, and alternative loan products emerge. What suited you years ago might no longer. Reviewing your loan every two to three years is crucial for maintaining good financial health. Below is some general guidance, along with helpful links, to steer you through what to check this end of financial year.
Many borrowers lock in a loan and forget about it – but letting your home loan sit untouched for years could quietly erode your financial position. As part of your EOFY reset, ask yourself:
If you’re unsure how to answer these questions, or if the answers aren’t giving you confidence, it’s a clear sign to speak to a broker. I can review your current loan, compare rates and features across lenders, and help ensure you’re in a product that aligns with your financial needs and goals.
If you also hold investment property, you should go a step further and prepare your portfolio for tax time. Here’s a quick EOFY checklist to help keep you on track.
The Australian Taxation Office’s 2025 Tax Time toolkit for investors has a wealth of information about what tax deductions you can and can’t claim for your property investment.
Examples include:
Your tax accountant will need details about your rental income and expenses to process your tax, so make sure you have these ready by the end of the financial year.
Hopefully you’ve moved away from a shoebox of faded receipts to an online platform that allows you to store and manage your records effectively. There are all sorts of record-keeping tools out there that make it easier for property investors to keep records safe in one place.
If you’re expecting to be in a higher tax bracket this year compared to next, it might be worth pre-paying your investment property expenses like insurance or loan interest before June 30. That way, the tax deductions will fall in the current financial year.
You can find the 2024-25 tax brackets on the ATO website.
If your tenants haven’t paid their rent, you may be able to write it off as a bad debt. This can reduce your taxable income, so it’s worth speaking to your accountant about it.
Sold an investment property this financial year? You’ll need to plan for the Capital Gains Tax (CGT) liability.
Keep in mind that if you’ve held the asset for longer than 12 months, you may be entitled to the 50% CGT discount.
You can claim a deduction in value of depreciating assets, for example a dishwasher in your rental property.
If you haven’t already done so, get a quantity surveyor to prepare a depreciation schedule report for your investment property. This will outline the available deductions for the depreciation of the building and its fixtures and fittings. It’s another great way to save on tax.
How did your property perform over the past 12 months? What was the rental income compared to previous years? What were the occupancy rates and maintenance costs comparatively?
If you have multiple investment properties, this may help you weed out the high-performing investments and draw your attention to those that need restructuring or further review.
Next, consider what your goals are moving forward? Maybe you want to get a second investment property, or renovate your current one to boost its rental return? If so, talk to us about your finance options.
With two cash rate cuts so far this year and a lot of interest rate movement, it’s a good time to get an investment loan health check.
The information discussed in this article is general in nature and you should always seek professional advice in relation to your individual tax circumstances. I can assist with your finance options. If you’d like help reviewing your current loan or lining up finance for a future purchase, I’m just a call away. Reach out to discuss your options and make the most of the new financial year.
103 Banna Avenue,
Griffith NSW 2680
P | 02 6964 4690
info@mylendingspecialist.com.au
Office hours: 9:00 – 5:30
