If you’ve had your home loan for a few years, chances are you’ve built up equity — and that equity could be your launchpad into property investment.
WHY REFINANCE?
Refinancing your home loan to invest offers two powerful benefits:
- Immediate savings through a lower interest rate
- Long-term growth by unlocking equity to fund a second property
According to CoreLogic, many homeowners have seen property value gains of over 30% in the past decade. Instead of letting that equity sit idle, you can use it to grow your wealth.
HOW EQUITY-RELEASE REFINANCING WORKS
Let’s break it down.
Refinancing simply means changing your home loan — usually to get a lower rate, better features, or both.
Equity release is when you tap into the value of your home that you own outright (i.e. the part not covered by your current mortgage). Think of it like unlocking a portion of your home’s value in the form of cash – which you can then use to invest.
You’re not selling your home – you’re just putting its value to better use.
HOW TO REFINANCE A HOME TO INVEST IN REAL ESTATE
Step 1 – Calculate Your Usable Equity
For example, if your home is worth $800,000 and you owe $400,000 on your loan, you may be able to access part of that $400,000 difference to use as a deposit on an investment property. We’ll help you determine how much equity you’ve built in your property. Generally, you can borrow up to 80% of your home’s value, minus your remaining mortgage. That difference is your usable equity.
Step 2 – Choose the Right Refinancing Structure
Offset account? Interest-only? Fixed vs variable? The best option depends on your goals, risk tolerance, and future plans. We tailor your refinance structure to align with your investment strategy.
Step 3 – Redirect your Equity into a High-Growth Investment Property
Once your loan is in place, the equity you’ve released becomes your deposit for an investment property. From here, our property experts step in to find the right asset in a high-growth, high-yield location.
THE BENEFITS OF REFINANCING – BEYOND A LOWER RATE
There are multiple layers of benefits when you refinance your home loan to invest:
- Access to funds without needing to save a full deposit
- Potential tax deductions on your investment loan interest
- Rental income from your new property
- Capital growth from two properties increasing in value over time
- Flexible loan features like offset accounts or redraw
This approach allows you to build wealth using your existing resources — all while staying in control of your finances.
HOW FUTURE ASSIST SOLVES ROADBLOCKS
It’s completely normal to feel unsure when considering a refinance, especially when you’re thinking about using your home equity to invest. There are a lot of moving parts — and that’s where we come in.
At Future Assist, we’ve helped thousands of people overcome these exact hurdles. Here’s some common client roadblocks and how we can provide clear, manageable steps forward:
What if I don’t know how much equity I have?
You’re not alone – most people aren’t tracking their home value day to day. That’s why we start with a free equity check and professional property valuation. We’ll show you what your home is worth today, how much of it you own outright (your usable equity), and how much of that could be released to invest, all without impacting your lifestyle.
What if I can’t afford two loans?
The idea of juggling two mortgages can be daunting. But in most cases, the rental income from your new investment property helps cover the second loan. Before you make any decisions, we run full cash flow modelling based on your real financial situation, including your income, expenses, and future plans. If the numbers don’t stack up, we won’t recommend moving forward. Our goal is to grow your wealth sustainably and not stretch you too thin.
Where do I even start with choosing a property?
Buying an investment property is different to buying your family home. It’s less about emotion and more about performance – rental returns, capital growth, location trends, and tenant demand. That’s why we have a dedicated team that does the research for you. We identify opportunities in high-growth markets across Australia and guide you through the shortlist, inspections, contracts, and settlement. It’s full-service support, from strategy to keys.
Confused about tax and ownership structure?
Getting the structure right from day one makes a big difference. Should the property be in your name, joint names, or a trust? What expenses are tax-deductible? How do you claim depreciation? We work closely with your accountant (or connect you with one we trust) to make sure your loan, property, and investment setup are all aligned with your financial goals and ATO-compliant.
Is refinancing even worth it?
Many clients are surprised to learn how much they’re overpaying on their current loan. We’ll compare your existing mortgage with dozens of competitive home loan options from trusted lenders. You’ll get a clear side-by-side look at potential interest savings, repayment improvements, and how much equity you could unlock. If the benefits aren’t meaningful, we’ll be the first to say so, there’s no pressure.
REAL RESULTS: PAUL & RACHAEL
In 2024, Paul and Rachael refinanced their Melbourne home, unlocking $190,000 in equity. This provided the deposit and covered the costs for a $650,000 investment property in Southeast Queensland.
- Their Melbourne home loan repayments dropped from $2,371 to $2,071 per month
- Their investment property rents for $630 per week – a yield of over 5%
- The property is now appraised at $753,000 – gaining over $100,000 in less than 18 months
All made possible with the support of Future Assist’s property and finance teams.
RISK AND HOW WE MITIGATE THEM
Let’s be honest — every investment comes with some level of risk, especially when borrowing money to grow your wealth. But that doesn’t mean you have to go in blind or take unnecessary chances.
The key is having a solid plan, smart structure, and expert support to guide you through it all. Here’s how we help you stay protected while aiming for strong returns:
Taking on too much debt?
It’s a common fear – and a valid one. We never recommend stretching yourself to the limit. Before you commit to anything, we do a full financial health check. That includes assessing your current income, spending, buffers for unexpected costs, and even future plans like kids, career changes, or holidays. We only recommend borrowing what you can comfortably manage, with room to move if things change.
Rising interest rates?
You’re not alone. Rates can go up and down, and that can impact your repayments. To help you stay in control, we explore loan options that include fixed interest periods (for certainty) or split loans (part fixed, part variable), so you get a balance of stability and flexibility. We’ll talk you through what each option means for your monthly budget — no jargon, just clear guidance.
Finding a tenant or your property losing value?
These are genuine concerns in a changing property market. That’s why we only recommend investment-grade properties in locations with strong rental demand, low vacancy rates, and long-term growth indicators. Our team constantly reviews the data, trends, and performance metrics – so you’re not relying on luck or hype when choosing where to invest. And as part of our services, we also help secure your first tenant, making the transition from settlement to rental income as smooth as possible.
READY TO UNLOCK YOUR EQUITY?
Whether you’re just starting out or already planning your next investment move, refinancing your home to invest could be your smartest financial decision yet.
We can help you get started with:
✅ A free equity assessment to understand your borrowing power
✅ A strategy session with our team to explore tailored investment options
The information contained in this webpage is general in nature and has been provided in good faith, without taking into account your personal circumstances. While all reasonable care has been taken to ensure that the information is accurate and opinions fair and reasonable, no warranties in this regard are provided.
