Accessing the equity in your home

couple checking how to access equity in their home

Looking to invest in more property? Perhaps you're thinking about renovating a new bathroom or kitchen. Maybe you’re even considering going back to uni. These are just a few reasons you might want to access the equity in your home loan.

Whatever the reason, releasing equity from your home loan could be a savvy way to help bring those dreams to life.

What is equity

What is equity?

Equity is the market value of your property minus what you owe on your home loan. It's roughly the amount you’d receive if you were to sell your property and pay off your mortgage. What some people don’t realise is you can tap into these funds without actually selling your property.
How do you calculate equity

How do you calculate equity?

Let’s say your home is worth $500,000 and you have $200,000 outstanding on your mortgage. That means you have approx $300,000 in equity.

How can you increase equity?

There are several ways that equity in your property can change – either through improvements you’ve made, market fluctuations, or extra payments.

Additional contributions

Additional contributions

If you keep paying off your loan, you'll continue to gain equity over time. You can build equity (and pay less interest each month) by making additional repayments each month or through making a lump sum payment.


Making improvements to your property can often increase its market value, which in-turn can increase the equity in your property. 
Market changes

Market changes

Equity may increase if the market value of your property naturally increases over time.


Capitalising on the equity in your home

You can take advantage of your home equity in several ways:


Buying an investment property

You can refinance your current home loan and use the equity to buy an investment property. The rent you receive can help pay off your home loan, give you funds to invest further, and you may even enjoy capital gains over time.


Renovating your home

Looking to improve your existing home? Accessing your equity could help turn those renovation goals into a reality. When done properly, renovations can increase the value of your property. It’s important not to make improvements that cost more than the value they’ll add to your property - this is known as overcapitalisation.


Accessing cash out

Whether you’re looking to pay off some outstanding debts, pay for upcoming study or purchase a new car or caravan – the power of your equity can be impressive!


Tips on how to use equity in your home

You can either refinance your existing mortgage, access cash through redraw, or borrow against your equity.



This allows you to withdraw any extra repayments you’ve made over and above the minimum payments.
Mortgage Refinancing

Mortgage Refinancing

You can also refinance your existing mortgage to access current market rates or change your loan options. You may also be able to borrow on top of your existing mortgage.


Think about the risks

Whether you’re about to buy an investment property or consolidate debts - there are some potential risks with accessing equity. It’s important to consider the value of your home, your credit history, and your ability to meet your repayments before you borrow against your home. Also consider any discharge or exit fees if you’re moving lenders.


How much equity can I use?

We allow for borrowers to cash out up to 85% of LVR. Eligibility, criteria, terms, conditions may apply.

Apply for a Pepper Money Home Loan

Want to find out where you stand? Calculate your Borrowing Power.

Work out how much you may be able to borrow with us in just a few simple steps – and it won't impact your credit score.


You are protected by responsible lending laws. Because of these protections, the recommendations given to you about home loans are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed.

All loan applications are subject to the lender completing responsible lending checks and considering the borrower’s individual circumstances. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

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