Understanding equity

What is equity?

Equity is the difference between the value of your property and how much you owe on it. 

For example:

If your home is worth $500,000

And you still owe $300,000

You could have up to $200,000 in equity.

Over time, as you pay down your home loan and if the value of your property grows, your equity increases. 

Using equity to build wealth through property investment

Unlocking the equity in your home could be an option if you were thinking about purchasing an investment property, as it could help with a deposit for that purchase. Investors may be able to negatively gear their property investments depending on their personal circumstances.^disclaimer

What can I use my equity for?

Depending on your financial circumstances (and the advice you receive from your financial and tax adviser), you may be able to use some of your equity for a wide range of purposes, like a new car or renovations. You may also choose to create or build an investment portfolio. There are many possibilities, it's really up to you.

By unlocking the equity in your property, you may be able to take advantage of these opportunities sooner. 

For example: if you have a home loan with us and you’ve got equity in that property, you could apply for ANZ Equity Manager or a supplementary loan. You can talk to us about how much you might be able to borrow using that equity, but you must also be able to make the loan repayments. Choose the ANZ loan that suits your needs best, it doesn’t have to be the same as your existing one. Then you can use that money for a variety of different purposes according to your needs.

Talk to our Home Loan Specialists about how you may be able to take advantage of your equity.