You could use some of the estimated total equity in your property to borrow money to fund your next home move. The amount you could borrow, also known as ‘useable equity’ is generally 80% of the estimated property value, minus loan balance (inclusive of any redraw amount). You could potentially borrow more than 80%, however in such a scenario you may need to take out Lenders Mortgage Insurance (LMI). For example, $800,000 estimated property value x 80% minus $400,000 loan balance (including redraw) = $240,000 useable equity.
An increase in your home loan may impact your mortgage repayments and the amount of interest you pay on your home loan. You can estimate your repayments or speak to an ANZ Home Loan Specialist to find out whether this is possible for you and what your repayments could be, if you wish to access the useable equity that may be available to you.Learn more about using equity