14/10/2026
๐ฃ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ข๐๐ป๐ฒ๐ฟ๐: ๐จ๐๐ถ๐ป๐ด ๐ฒ๐พ๐๐ถ๐๐ ๐ณ๐ผ๐ฟ ๐ฎ๐ป ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ฑ๐ฒ๐ฝ๐ผ๐๐ถ๐?
You may have heard people talk about using the equity in their home to buy an investment property without needing a cash deposit.
But the deposit doesn't disappear.
You're effectively borrowing it against a property you already own.
Let's say you're buying an $800,000 investment property and plan to contribute 20% towards the purchase ($160,000).
Rather than providing the $160,000 from savings, you may be able to borrow it against the equity in your existing property. You then arrange the balance of the purchase price against the investment property.
So there can actually be two pieces of borrowing involved:
๐๐ถ๐ฟ๐๐, ๐ฏ๐ผ๐ฟ๐ฟ๐ผ๐๐ถ๐ป๐ด ๐ฎ๐ด๐ฎ๐ถ๐ป๐๐ ๐๐ผ๐๐ฟ ๐ฒ๐
๐ถ๐๐๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐๐ผ ๐ฝ๐ฟ๐ผ๐๐ถ๐ฑ๐ฒ ๐๐ต๐ฒ ๐ฑ๐ฒ๐ฝ๐ผ๐๐ถ๐ ๐ฎ๐ป๐ฑ ๐ฝ๐๐ฟ๐ฐ๐ต๐ฎ๐๐ฒ ๐ฐ๐ผ๐๐๐.
T๐ต๐ฒ๐ป, ๐ฏ๐ผ๐ฟ๐ฟ๐ผ๐๐ถ๐ป๐ด ๐ฎ๐ด๐ฎ๐ถ๐ป๐๐ ๐๐ต๐ฒ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐๐ผ ๐ฐ๐ผ๐บ๐ฝ๐น๐ฒ๐๐ฒ ๐๐ต๐ฒ ๐ฝ๐๐ฟ๐ฐhase.
That's important to understand.
Using equity may mean you don't need to contribute a large cash deposit, but your overall debt is still increasing by the total amount you borrow.
Some investors use this approach more than once, accessing equity created in properties they already own to help fund subsequent purchases.
That's one way a property portfolio can grow without having to save a new cash deposit from scratch for every purchase.
But having enough equity for the next deposit doesn't necessarily mean you'll be able to borrow the rest of the purchase price.
We'll look at why next week.
