HOW TO use Equity to buy Property in Australia

Hunter Galloway are an Award Winning Mortgage Broker based in Brisbane. We help clients from our local area, Australia, and all over the world. We believe buying a home should be stress-free and uncomplicated, and we will work for you to make your dreams become reality.

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About this video

In this enlightening video, we dive deep into the world of property equity in Australia, offering you a comprehensive guide to understanding and leveraging the equity in your home. Whether you're dreaming of upgrading your lifestyle or expanding your investment portfolio, this video is your key to making informed decisions.

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What You'll Learn:

Equity Basics: Discover what equity is and how it's calculated in the Australian property market.

Using Equity as a Deposit: Learn how to use the equity in your current home as a deposit for purchasing an investment property.

Methods to Access Equity: Explore the differences between cross-collateralisation and stand-alone loan options for buying another property.

Accessing Your Equity: Understand the processes of refinancing and increasing your loan amount through a top-up.

Lender's Requirements: Get insights into what lenders look for when you apply to access your equity.

Equity vs. Borrowing Power: Learn why having equity doesn't necessarily increase your borrowing power and what factors lenders consider.

[sergio_ra]

The housing prices could be easily fixed by requiring a 20% deposit in cash, not equity

[metcruza]

You still need to be able to afford the repayments.
Sure 2nd property maybe goes up in value then after 1 year you sell make $100 K and pay capital gains.

Sure some neg gearing deductions and depreciation...but still a decent tax bill

[ricnicodemus]

I thought the 80% burrowing equity is calculated as $1, 000, 000 (property value) - 500, 000 (loan) = $500, 000 x80% = $400, 000 will be bank be willing to

[kimlisia]

Hey guys, i always appreciate all of your videos, always find use from them, hoping to contact you in a few months for your services. I do have a request though - could you PLEASE do a video on maximum exposure limits in Australia? my point of view is having a good investment in Ipswich, i want to pull out equity to get 3-4 investment properties with each having a deposit sitting at around 8-10%. I have worked out all expenses (from mortgage to water connection costs) and i can afford repayments and everything fits at a good amount in relation to the household income - but, dont know what the mortgage exposure limit would be - ie, how does one get a few houses, gain equity, get more deposits for more houses etc. and not run into their exposure limit? how do i get around that?

[sarahfrancess]

Great video! I have a question - I am going to purchase my first property later this year (Aug/Sep)
I have almost 200k savings but wanting to put only 100-120kish down on first one.
That will leave me with a bit of money leftover.
(80-100k but still aggressively saving more each month)
Would you suggest going straight into the second property, or spend a bit of time trying to pay down the first house. Then, a bit later, use the equity from that house to purchase the second?
Keeping in mind I only have a borrowing capacity of 500k.

[Chevaposaurus]

I'm all in.
Curent house worth 1.4M
$340, 000 left to pay.

looking for investment property, [found one @ $350, 000 to buy with rental income of $420 a week] with little to no adjustment in repayments to current loan. (ie, rental income of new property should cover cost of higher interest rate) which means, "same" repayments as of current for me personally, with income of investment to cover the extra repayments. Yes/No, shoot me the DM fam.

[d.j.z.j]

doesnt taking out equity then reset your mortgage back to 30 years ? why is equity good for renovation or is it not a good idea to increase house value.

[sarahs]

Thanks. What happens if you have two people on the mortgage-one owns a house, one has never bought. Do you have to pay the whole stamp duty or not?

[tirituatai]

Can a mortgage broker use the client’s equity for his own personal use without client knowing

[susmusmanoj]

Hi guys u mentioned that" higher the income and lower ur expenses banks lend u more money "

But isn't the banks check the spending based on their general ratios ? So even if u earn 100k and have the minimalist expenditure in Australia, banks will still refer to that ratio ? ( This was told by me by Bank SA )
Is that correct ??

[tessajones]

Can you use equity to buy property overseas? Or can you use it for anything? 🏰