Accessing equity

Question from Hayley updated on 12th September 2016:

I am looking at using equity for another home. My parents currently own a home valued at $600,000 and there is $98,000 left to pay. How do I go about applying or could you recommend a bank that is easy to deal with?

Our expert Kris Pedersen responded:

I need some more information, so email me at

When you say that there is $98,000 left in regards to equity off the value of $600,000, do you mean the mortgage is sitting at $502,000 or are you stating that there is $98,000 available under the 80% LVR mark?

If it is the former then it is unlikely that you can use this at all.

But, if it is the latter, then it comes down to, ideally, doing a top up against this property to extract the equity. Obviously, your parents would need to be involved and understand the risks. You would then look to get a preapproval potentially from a secondary bank for the remainder of the funds to complete the purchase.


Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

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