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Compare home equity loans to suit your needs.
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Get expert help with releasing equity for your next project
Our dedicated team of Money.com.au Home Loan experts is here to help. Updated 13 Feb 2026.
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No monthly or ongoing fees, plus unlimited free redraws.
Loans.com.au Variable Bare Home Loan
Borrow up to $2m with competitive variable rates from 5.54% p.a. (comparison rate^ 5.58% p.a.). Enjoy flexible payment options, zero monthly or ongoing fees, unlimited free redraws and up to 30 year terms. 90% Max LVR applies. Visit site for T&Cs and to check eligibility.
Loan amount
| Product | Interest rate | Comparison rate | Monthly repayment | Key features | Compare Now |
|---|---|---|---|---|---|
 Transport Mutual Credit Union Home Equity Loan | 6.99% p.a. variable | 6.83% p.a. | $3,323 Principal & Interest | Max LVR 80% | |
 BCU Bank Line of Credit Loan | 6.99% p.a. variable | - | $3,323 Principal & Interest | Max LVR 80% App Fee $300 | |
 Unity Bank Flexi Home Equity | 8.25% p.a. variable | - | $3,756 Principal & Interest | Max LVR 80% | |
Unity Bank Flexi Home Equity | 8.25% p.a. variable | - | $3,756 Principal & Interest | Max LVR 80% | |
 Coastline Home Equity Access Home Loan | 8.31% p.a. variable | - | $3,777 Principal & Interest | Max LVR 80% App Fee $300 | |
Coastline Home Equity Access Home Loan | 8.31% p.a. variable | - | $3,777 Principal & Interest | Max LVR 80% App Fee $300 |
A home equity loan allows you to borrow money by tapping into the equity you’ve built in your home. You can access this equity in two main ways: by refinancing your existing home loan to increase its balance or by taking out a separate loan or line of credit.
Lump-sum home equity loans work just like a standard home loan agreement, where you borrow an approved amount and make regular repayments – including interest – over the loan term.
Home equity loans usually have terms of up to 10 or 15 years, or no fixed term if it’s a line of credit equity loan. Depending on the lender, you can normally choose between making principal and interest or interest-only repayments.
People borrow against their equity through a home equity loan for a variety of reasons, including home renovations and buying an investment property.
Equity is the difference between your home’s current market value and the amount you still owe on your mortgage. For example, if you have a property with a market value of $800,000 and a mortgage with $500,000 left to pay, you would have $300,000 in total equity.
However, keep in mind you won’t be able to access 100% of your equity. Lenders generally like borrowers to keep some equity in your home to protect against the risk of owing more than the property's value if its value decreases. This is known as being in negative equity.
Lenders generally only allow you to access up to 80% of your property's value, minus your outstanding debt in equity. This is called usable equity — the equity in your home you can borrow against.
The average borrower who refinances their mortgage in Australia owns a property valued at $1.139m and has a remaining home loan balance of around $566,000, meaning overall equity of $573,000.
If that average borrower wanted to maintain an LVR of 80%, they would potentially have around $346,000 in usable equity available to them.
*Based on Money.com.au analysis (carried out in January 2026) of thousands of refinance inquiries.
You can calculate your total home equity by simply subtracting your loan balance from your property’s market value. But, there’s an additional step to determine your usable equity. For instance, if your home is valued at $800,000 and you have $500,000 remaining on your mortgage, here's how you’d calculate it:
Property value | $600,000 |
|---|---|
Outstanding loan balance | $400,000 |
Total home equity | $200,000 |
Usable home equity | $80,000 |
Property value | $800,000 |
Outstanding loan balance | $500,000 |
Total home equity | $300,000 |
Usable home equity | $140,000 |
Property value | $1,000,000 |
Outstanding loan balance | $600,000 |
Total home equity | $400,000 |
Usable home equity | $200,000 |
Property value | $1,200,000 |
Outstanding loan balance | $700,000 |
Total home equity | $500,000 |
Usable home equity | $260,000 |
Property value | $1,400,000 |
Outstanding loan balance | $800,000 |
Total home equity | $600,000 |
Usable home equity | $320,000 |
| Property value | Outstanding loan balance | Total home equity | Usable home equity |
|---|---|---|---|
$600,000 | $400,000 | $200,000 | $80,000 |
$800,000 | $500,000 | $300,000 | $140,000 |
$1,000,000 | $600,000 | $400,000 | $200,000 |
$1,200,000 | $700,000 | $500,000 | $260,000 |
$1,400,000 | $800,000 | $600,000 | $320,000 |
Akos from Woodford, NSW
“We wanted to refinance to a lower rate and unlock equity in our home for a variety of needs and opportunities. Refinancing can be daunting – especially if you run your own business and have a complex financial situation like we do – but the team at Money.com.au were exceptionally helpful. They were excellent communicators, told us exactly what information we needed to provide, and then handled the rest. I can’t recommend them highly enough. They found a bank willing to work with our complex financial situation, which allowed us to unlock equity in our home.”
Akos from Woodford, NSW
There are three main types of home equity loans:
You can borrow against the usable equity in your current property by refinancing your home loan. In this case, it means increasing your loan amount and getting the released equity paid to you in cash. You can then use the cash as a deposit for an investment property or your next home, or to fund renovations or other investments.
The cash used for the deposit will be secured by your current property. However, the new loan you take out for the rest of the purchase will be secured by the new property. Essentially, you're using your current property to help finance the deposit, but the majority of the new purchase will be financed with a separate loan, secured by the new property.
According to Westpac, most property investors choose to access their equity by refinancing an existing loan, which can make managing the increased debt easier than having a separate loan.
A line of credit allows you to withdraw funds whenever you need up to an approved limit based on the usable equity in your home. You only pay interest on the funds you withdraw, not on the entire line of credit.
According to Westpac, many investors choose a home equity line of credit to pay for renovations or home improvements or to make personal investments.
A home equity loan is a new loan separate from your existing mortgage. It’s paid out to you in a lump sum that you repay with interest in regular instalments over time. A home equity loan is secured by your property, with your cashed out equity used as a deposit.
Your home equity loan is a separate account from your initial home loan and can be set up to suit your financial goals. If you access your equity with a separate loan, you can choose a different loan term and features that suit your needs. This set up means you’ll have to service two loans instead of a larger loan through a simple refinance.
Not all lenders offer second loan options when refinancing. For example, ANZ and NAB only allow you to access equity by refinancing (topping up) your existing loan. It’s important to check with your lender to understand your options, or you can speak with a mortgage broker to find the best products for your needs.
You can typically borrow up to 80% of your existing property's value, using the equity as a deposit to buy a new home.
For example, if your home is worth $600,000, you could borrow up to $480,000 (80% of $600,000). However, the actual amount you can borrow depends on your existing mortgage balance. If you still owe $300,000, you could access up to $180,000 in equity through a home equity loan or line of credit (calculated by subtracting the $300,000 you owe from the $480,000 maximum borrowing limit).
According to Money.com.au’s home loans expert Mansour Soltani, some banks may lend you up to 90% of the property’s value, but this will likely incur lender’s mortgage insurance (LMI) and a higher interest rate.
A home equity loan can be used for various purposes, including:
Many investors use their home equity to help finance the deposit for an investment property. You can do this with a loan top-up, where you increase your current loan amount by refinancing, or by taking out a supplementary loan. Using home equity this way can help you leverage your property’s value to secure the funds needed to expand your investment portfolio or buy a second home.
You can access your home equity to fund home improvement projects, which can help increase the value of your property. If you have a home renovation planned, such as a new bathroom or a bedroom to accommodate a new family member, you might be able to use the equity you have in your home to fund it and increase the value of your home at the same time.
If you have enough equity in your property, you may be able to borrow against it to consolidate your high-interest debt (e.g. credit card balances and personal loans) into a single loan amount at a lower interest rate. Under a debt consolidation home loan, you can help streamline your repayment obligations.
You may be able to unlock some of your equity to make personal investments in other assets like shares, bonds, mutual funds, ETFs or other financial products. It’s best to speak to a financial advisor about your investment goals and risk tolerance before using your home’s equity to invest.
Mansour Soltani , Money.com.au's home loans expert
“Most investors choose an interest-only home equity loan to lower their repayments and increase their cash flow, but doing this generally adds 0.5% to your interest rate. Consider looking for a home equity loan with an offset account. You can generally claim expenses paid out of the offset as a tax deduction, something that is not possible with a redraw.”
Mansour Soltani , Money.com.au's home loans expert
The interest rate plays a big part in determining how much you’ll pay over the loan term. Compare rates from different lenders and ensure you’re getting a competitive deal. For example, if one lender offers an interest rate of 7.80% and another offers 8.20%, over a 10-year term, that 0.40% difference could save you thousands of dollars.
How long you have to repay the loan will affect both your monthly repayments and the interest charged. Shorter terms mean higher repayments but less interest paid over time. For instance, a 15-year term will mean smaller repayments than a 10-year term, but you will end up paying more interest overall.
LVR is the percentage of your home’s value that you can borrow, and lenders vary in terms of the maximum you can borrow. The higher the LVR, the more you can borrow, but this could mean the loan comes with a higher interest rate and stricter lending criteria. If a lender allows you to borrow more than 80% of your property’s value, you may also likely need to pay lender’s mortgage insurance.
Financial details like your credit score and income are generally less important in determining the rate on a home equity loan compared to personal or car loans. However, they can still influence which lenders’ rates you may be able to access. Typically, borrowers with more equity in their property have access to the widest range of the best rates and terms.
Some home equity loans offer flexible features like the ability to make extra repayments and a redraw facility. Extra repayments help you reduce your loan faster, saving on interest, while a redraw facility lets you access those repayments if needed later. These features provide flexibility, but be sure to check if there are any fees or restrictions.
Always check for any upfront, ongoing or exit fees. Some lenders charge application fees (i.e. $200-$600), while others might have early repayment penalties. Make sure you check the fine print to understand all costs involved.
| Loan | Interest rate | Comparison rate^ | Max LVR |
|---|---|---|---|
| Move Bank Everyday Fixed Home Loan | 4.99% | 5.24% | 95% |
| Move Bank Everyday Fixed Home Loan | 5.04% | 5.23% | 95% |
| in1bank in1home | 5.08% | 5.13% | 50% |
| Easy Street Fixed Home Loan | 5.09% | 5.34% | 95% |
| The Mac Credit Union Fixed Home Loan | 5.09% | 7.02% | 80% |
| Gateway Bank Green Plus Home Loan | 5.10% | 5.40% | 80% |
| Pacific Mortgage Group Owner Occupied Variable Home Loan | 5.14% | 5.14% | 80% |
| RACQ Bank Fair Dinkum Home Loan | 5.14% | 5.15% | 60% |
| RACQ Bank Fair Dinkum Home Loan | 5.14% | 5.15% | 60% |
| Bank of Sydney BOS Basic Home Loan | 5.14% | 5.18% | 50% |
| Loan | Interest rate | Comparison rate^ | Max LVR |
|---|---|---|---|
| Move Bank Everyday Fixed Home Loan | 5.14% | 5.39% | 90% |
| Move Bank Everyday Fixed Home Loan | 5.19% | 5.38% | 90% |
| South West Slopes Bank Optimum Investor 1 Year Fixed Rate Home Loan | 5.20% | 6.05% | 90% |
| Move Bank Everyday Fixed Home Loan | 5.29% | 5.43% | 90% |
| Border Bank Customs Value Investment | 5.29% | 5.52% | 60% |
| Border Bank Customs Value Investment | 5.29% | 5.56% | 80% |
| Unloan Refinance | 5.34% | 5.25% | 80% |
| Pacific Mortgage Group Investment Variable Home Loan | 5.34% | 5.34% | 80% |
| RACQ Bank Fair Dinkum Home Loan | 5.34% | 5.35% | 60% |
| Easy Street Variable Home Loan | 5.34% | 5.39% | 95% |
You can build equity in your home in two main ways: waiting for your property’s value to increase (hopefully), by making renovations to increase its value, or by paying down your mortgage.
Discover your potential borrowing power for a home equity loan or line of credit.
Refinancing typically involves replacing your existing mortgage with a new one or increasing your current loan balance with a top-up to access additional funds. In contrast, a home equity loan can be a separate loan taken out alongside your existing mortgage, or it can be a cash-out refinance or a line of credit.
Think about how borrowing more will raise your repayments and increase the risk of losing your home if you can’t afford them. ANZ recommends also considering whether it will mean your loan term will be longer (meaning you’ll pay more in interest), whether you can still handle higher repayments if interest rates go up, and whether you will still have enough of a financial buffer for emergencies.
An online property valuation can give you an estimate of your home's current market value, which is what your home equity is based on. However, keep in mind that the bank will order its own valuation when assessing your equity loan application.
While online and real estate valuations provide a point of reference, bank valuations use different benchmarks to determine a property's market value. In most cases, bank valuations tend to be lower than those provided by real estate agencies, according to Westpac.
Jared Mullane is a finance writer with more than eight years of experience at some of Australia’s biggest finance and consumer brands. His areas of expertise include energy, home loans, personal finance and insurance. Jared is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821).
Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.
General information only
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.
What products, features and information are shown
While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.
Our product comparisons may not compare all home loan features and attributes relevant to you.
Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.
How home loans are sorted and filtered by default
Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default home loans are sorted by:
Some home loan products listed in our tables are available through a mortgage broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.
Mortgage brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.
Our tables feature all home loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.
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